Hiap Tong is the leading provider of hydraulic lifting and haulage services in Singapore and has a customer base of more than 200 customers.
Its gross profit margin are high and has a high ROE. Hiap Tong also entered into an Equity Joint Venture Agreement with Inner
Mongolia Wulanchabu An Da Heavy Lift and Transport Co.
Ltd to tap into the wind power market as it sees huge opportunities to provide specialised hydraulic lifting in the PRC.
Ever since the company reports its 1H financial result last August, the counter had been falling and is trading at PE of 3.08. It seems that the stock is undervalued.
Any comments on this company and its value/results?
Hiap Tong Awarded a 5-Year Extension for Lifting Services Contract by ExxonMobil
9 January 2018
Hiap Tong Corporation Ltd announced that its wholly-owned subsidiary, Hiap Tong Crane & Transport Pte Ltd, has been awarded a 5-year extension lifting services contract by oil and gas company, ExxonMobil Asia Pacific Pte Ltd.
The Extension Contract commenced on 1 January 2018. Similar to the previous contract with ExxonMobil (1 January 2013 to 31 December 2017), the Extension Contract entails the provision of crane rental and/or lifting services work to ExxonMobil and/or its affiliates at ExxonMobil’s Jurong Refinery, Pulau Ayer Chawan and Singapore Chemical Plant in Singapore.
Whilst the actual value of the lifting services will depend on the amount and scope of work to be carried out, the Group expects the Extension Contract to continue to have a positive contribution to its earnings and financial performance.