SINGAPORE (Mar 8): CIMB likes integrated heavy lift specialist Tiong Woon Corp for its proven track record of more than 35 years.
This comes after the group recently announced it had reversed out of the red in 2Q18 following three consecutive quarters of losses with earnings of $0.52 million although revenue fell 10% on-year due to weakness across all business segments.
See: Tiong Woon's 2Q earnings dips 71% to $0.5 mil
At its current share price of 32 cents, the stock trades at a historical 0.3 times FY17 ended Dec book value of $1.06.
In an unrated report on Thursday, analyst William Tng highlights the Singapore-headquartered company’s presence in Asean, China, Sri Lanka, India and Saudi Arabia.
Tiong Woon is the sole distributor of IHI crawler cranes in Asean, excluding Indonesia. It is also the authorised dealer of all XCMG products in the region and the exclusive distributor for Zoomlion tower cranes in Singapore.
While the group’s management has guided for continued challenges in its operating environment as well as competition amid demand slowdown within the key markets in which it operates, Tng notes expectations of more business opportunities from Singapore’s ongoing pub-sector infrastructure development.
“Tiong Woon plans to continue effectively managing operating costs, explore strategic collaborations and targeting complex and high value projects to expand its business,” says Tng.
“The group manages turnkey projects for engineering, procurement and construction contractors and project owners, from planning and design of heavy lifting and haulage requirements to the execution stage, in which heavy equipment is transported, lifted and installed at customers’ facilities… It was ranked as the 18th largest crane-owning company worldwide by International Cranes and Specialized Transport in its IC50 2017 survey,” he adds.
Shares in Tiong Woon remain flat at 32 cents as at 11.07am.
