Thursday, September 29, 2011


TTJ: FYJul11 results.
Net profit more than doubled to $14.4m (+112% yoy), on the back of a rise in revenue to $96.9m (+39% yoy).
The higher revenue was underpinned by both its structural steel and dormitory business. Contract works which achieved substantial completion included Tower Crowns of the Reflections @ Keppel Bay, a campus at NUS, and SuperTrees at Gardens by the Bay.
Higher rentals were achieved for the dormitory business.
Gross margins improved across both segments, and rose to 28.5% from 25.5% yoy.

Order book stands at $147m stretching till FY12-13. Ongoing projects include structural steelworks for the following: the 3rd regional campus for ITE, a synthetic rubber plant for Asahi Kasei Chemicals, the third tank and piperacks at Spore LNG Terminal, solar cells mnftg plant for Tokuyama Corp in Msia. New projects include structural steel work contracts for part of the new Halliburton Plant in Spore and the MRT Downtown Line 3.

Mgt believes it is well placed to capitalize on the numerous potential projects in Spore’s construction sector, and is also pursuing potential projects in Msia and Vietnam. Notes it has made good progress on expanding and enhancing its facilities at its Keluli Factory.
Co proposes 0.6cts first and final div, +50% yoy. This translates to 4% yield based on last close at 15cts.
Stock trades at 3.6x P/E, 0.7x P/B.

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