TTJ Holdings

Brattzz, forget about the dorm, if they get it, is a plus, if they don't its not end of the world.

IIRC dorm brings in 2c worth of EPS a year.

Without dorm biz expect the yield and share price to drop


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(16-05-2016, 06:46 PM)BlueKelah Wrote: Without dorm biz expect the yield and share price to drop

How to drop when Chairman Teo already owns 84.38% of TTJ....
http://infopub.sgx.com/FileOpen/_eFORM1V...eID=393594
and he can quite easily privatise the company by offering a fair premium over its NAV/share.

From another perspective : How to drop when the company can easily declare another 'jumbo' dividend from its huge $60.1m (as at 31Jan16) cash reserve - equivalent to $0.17/share - which is expected to increase further to at least $70.0m as at 31Jul16 (FY16's year-end).

(16-05-2016, 07:36 PM)dydx Wrote:

(16-05-2016, 06:46 PM)BlueKelah Wrote: Without dorm biz expect the yield and share price to drop

How to drop when Chairman Teo already owns 84.38% of TTJ....
http://infopub.sgx.com/FileOpen/_eFORM1V...eID=393594
and he can quite easily privatise the company by offering a fair premium over its NAV/share.

From another perspective : How to drop when the company can easily declare another 'jumbo' dividend from its huge $60.1m (as at 31Jan16) cash reserve - equivalent to $0.17/share - which is expected to increase further to at least $70.0m as at 31Jul16 (FY16's year-end).

How to drop?

1) Chairman Teo large stake contribute to less float and low liquidity. look at today's tiny volume, any trigger will magnify movement up or down. So easy to drop on any sort of bad news. As bratzz mentioned, dormitory business which has provided earnings visibility is fading fast and could be a negative trigger, though may not be a big one as main business is still pretty profitable.
Possibility of privatisation itself does not prevent price drops. There are many privatisations that happen after a significant price drop.

2) The cash reserve is only to 51% of Mcap. 70m will only put it up to 59% of Mcap. Company will not do a jumbo dividend just to prevent a price drop. So price can still drop given the right negative news.

3) Order book as of march is down to 106m from 146m end 2015 (thats only about a years worth of revenue left). Still 2 weeks to go , but since december there have been no contract wins. Of course one could argue TTJ may only wanna pick up projects with good margins, but then again, less order book/revenue will translate to less EPS, less earnings usually means price drop.

3a) Given the poor local economy, projects could be drying up and competition hotting up, affecting future order book as well. There could also be sudden cancelation / delay of project or worse client bankrupt.

4) TTJ is already trading pretty close to NAV. For a small cap which is not in the "growth" category, it is already looking fairly valued. Just couple months back it was trading at 26cents, any turn in market sentiment could see it back there easily, thats a 10% drop.

Point 3 is not applicable to ttj industry. It is one of the growing spots in SG, with the many underground infra project.

My worry is ttj being stubborn in its compromise over margins

Vested

(16-05-2016, 09:08 PM)CY09 Wrote: Point 3 is not applicable to ttj industry. It is one of the growing spots in SG, with the many underground infra project.

My worry is ttj being stubborn in its compromise over margins

Vested

In fact there's a bigger competitor who has won (and is winning) a lot more orders and yet from the results thus far, it's rather obvious which business model makes more economic sense.

If one would like to invest in companies chasing for top line while risking the likely project overrun, there are aplenty in the market. Just have to cherry pick your poison.

<vested>

(16-05-2016, 10:58 PM)ksir Wrote:

(16-05-2016, 09:08 PM)CY09 Wrote: Point 3 is not applicable to ttj industry. It is one of the growing spots in SG, with the many underground infra project.

My worry is ttj being stubborn in its compromise over margins

Vested

In fact there's a bigger competitor who has won (and is winning) a lot more orders and yet from the results thus far, it's rather obvious which business model makes more economic sense.

If one would like to invest in companies chasing for top line while risking the likely project overrun, there are aplenty in the market. Just have to cherry pick your poison.

<vested>

I have seen many construction companies in SGX and I still TTJ is a gem among all of them.

However, I don't think a bumper dividend will be coming up so soon. We may need another catalyst. 

<vested>

left 15% public float... very tempting if i am the boss...

Replied leh from TTJIR... wait for End June 2016 to ask again!

"Thanks for your interest in T T J. We are the Investor Relations agency for the company and are happy to reply to your queries on behalf of T T J as per below.

Would like to enquire if TTJ has contact BCA for the lease extension of TTJ's 5,300-bed "Terusan Lodge 1" leasehold (expiring Jan2017) workers' dormitory property located at 5A Jalan Papan in Jurong, is listed in Appendix 2 of the report under the "TEMPORARY DORMITORIES" category?

If yes, can you share with us the outcome?
TTJ : According to our contract, T T J is not due to request for the lease extension yet.

If no, when will TTJ start contacting BCA?
TTJ: We will write in to the BCA approximately 6 months before the expiry of the lease, which will be sometime in June 2016.

Will these announcement be made in SGX's filing?
TTJ: We will check in due course so as to ensure that we are in compliance with SGX requirements.

If you have further queries, feel free to contact us.

August Consulting
T: 6733 8873"

(18-05-2016, 02:24 PM)brattzz Wrote: Replied leh from TTJIR... wait for End June 2016 to ask again!

"Thanks for your interest in T T J. We are the Investor Relations agency for the company and are happy to reply to your queries on behalf of  T T J as per below.

Would like to enquire if TTJ has contact BCA for the lease extension of TTJ's 5,300-bed "Terusan Lodge 1" leasehold (expiring Jan2017) workers' dormitory property located at 5A Jalan Papan in Jurong, is listed in Appendix 2 of the report under the "TEMPORARY DORMITORIES" category?

If yes, can you share with us the outcome?
TTJ : According to our contract, T T J is not due to request for the lease extension yet.

If no, when will TTJ start contacting BCA?
TTJ: We will  write in to the BCA approximately 6 months before the expiry of the lease, which will be sometime in June 2016.

Will these announcement be made in SGX's filing?
TTJ: We will check in due course so as to ensure that we are in compliance with SGX requirements.

If you have further queries, feel free to contact us.

August Consulting
T: 6733 8873"

Thanks for the sharing. I recalled, similar reply was highlighted in a AGM before. Anyway, a good reminder.

(vested)