Tuesday, September 24, 2013
Tat Hong - No co. specific news to highlight today, although note that counter has been heavily sold off in recent mths, following the depreciation of the AUD, where the group derives ~50% of their revenue from. Seperately, the stock recently saw some interests after the company announced plans to consolidate and optimize its Singapore operations. With the award of a 22-year lease by JTC for a 16,100 sqm plot of industrial land at Tuas South, the group can now consolidate its operations in the Tuas area for better operating efficiency. Tat Hong has been facing planning challenges, as it currently operates in five different sites in western Singapore, which are small and have short remaining leases of between two to 11 years. The Group also plans to move some of its less time-sensitive operations to Johor, where land and operating costs are lower. The consolidation of operations will free up one of its lease-hold properties, at 11 Gul Crescent, which the Group intends to divest through a public tender. Depending on the final sale price and the completion date, the Group is expected to recognize a gain on the divestment of 11 Gul Crescent for FY14.