TTJ Holdings

(22-03-2022, 09:55 AM)brattzz Wrote: it's not a case of Chairman Teo being too kind, TTJ is not the market-maker in this industry...only when GOV sector's /PTE sector's investors invest in infrastructures, then these investment can trickle down the supply chain, ie, main contractor, then sub-contractor, suppliers....

yes, still remain very undervalued...and may remain so for many years to come...

Thats why this one another value trap!

trading is halt since early morning, pre-market. Hopefully good news..

(20-05-2022, 11:16 AM)boonsong Wrote: trading is halt since early morning, pre-market. Hopefully good news..

yes, most likely, 
1) Either super big contract awarded, or,
2) Boss Teo (owns 85% anyway) finally delisting liao...since got 13milos coming in for S&P completed, , or,
3) he is selling off to interested parties at good price! and we should do the same!

I am very happy to wait! this is a good company since the beginning! 

  

A cash offer of $0.23 per share (27% premium from its market price)

https://links.sgx.com/FileOpen/Offer%20A...eID=718115

(20-05-2022, 08:44 PM)CY09 Wrote: A cash offer of $0.23 per share (27% premium from its market price)

https://links.sgx.com/FileOpen/Offer%20A...eID=718115

not the price I have in mind, very much in the low side tbh.

187milos order book confirmed, with more big orders coming!!
NAV : 36.9cts, Cash incoming 43 milos, shares 350,000,000

Yes, agreed it's low-ball offer, but it's not the final offer, so please hold-on to your shares, going by previous experiences, if acceptance levels are low and nearing the end offer date, there will be multiple extensions and EVEN revised offer price, up a few cents lah...

As the shares are illiquid, and small holdings, there are no funds to help us, so, as minority shareholders only, we are not sure if we can have enough % to influence or even attempt to block the offer,

So, i propose the following,
1) Hold on to your shares, don't accept first, monitor the acceptance level notifications,
2) Let the offer end dates be extended, be prepared for multiple times extension,
3) Hopefully, Boss Teo gets the hint, and revised his offer, maybe +2~3 cts lah...

4) Form a minority shareholders group, to calculate how much % we have sparely, and if it's enough to form a group/block somehow, contact Boss Teo after that to discuss, (note he may bother with us, and leave it to free-market trades, some yes, some no... )

Anyone interested, please msg me here, spread the words too, i will be coordinator for this short clause,

Vested* since for more than 10 years,
It's a good company and i see it's prospects getting better recently after covid open up,
From Boss Teo's point of view, it's a damn good time to make this offer!! shrewd lah BOSS!
But a bit stingy to low-ball...

Boss Teo, for your attention pls! Be generous a bit, we know you can sir!!

(20-05-2022, 09:53 PM)brattzz Wrote: 187milos order book confirmed, with more big orders coming!!
NAV : 36.9cts, Cash incoming 43 milos, shares 350,000,000

Yes, agreed it's low-ball offer, but it's not the final offer, so please hold-on to your shares, going by previous experiences, if acceptance levels are low and nearing the end offer date, there will be multiple extensions and EVEN revised offer price, up a few cents lah...

As the shares are illiquid, and small holdings, there are no funds to help us, so, as minority shareholders only, we are not sure if we can have enough % to influence or even attempt to block the offer,

So, i propose the following,
1)  Hold on to your shares, don't accept first, monitor the acceptance level notifications,
2)  Let the offer end dates be extended, be prepared for multiple times extension,
3) Hopefully, Boss Teo gets the hint, and revised his offer, maybe +2~3 cts lah...

4) Form a minority shareholders group, to calculate how much % we have sparely, and if it's enough to form a group/block somehow, contact Boss Teo after that to discuss, (note he may bother with us, and leave it to free-market trades, some yes, some no... )

Anyone interested, please msg me here, spread the words too, i will be coordinator for this short clause,

Vested* since for more than 10 years,
It's a good company and i see it's prospects getting better recently after covid open up, 
From Boss Teo's point of view, it's a damn good time to make this offer!! shrewd lah BOSS!
But a bit stingy to low-ball...

Boss Teo, for your attention pls! Be generous a bit, we know you can sir!!

I agree. This deal is extremely opportunistic and minority shareholders are being taken advantage of by Mr Teo.

TTJ's steel business has been profitable on an EBITDA basis in EVERY year since listing. It has averaged about 10m SGD in pretax earnings since FY07. Even with a conservative multiple (5x pretax earnings), the steel business should be worth at least $50m alone.

On top of that, TTJ had around $30m in net cash and securities as of January 31. Since then, TTJ has also received the proceeds from the disposal of the property at Johor Bahru, formerly used for the PPVC business, which was estimated at around $13.2m SGD. So all up — excluding any profit made since January 31 — TTJ should have around 43m in net cash.

Finally, TTJ also owns the two properties from the waste management business, which is currently mothballed. The auditor's report in the 2021 annual report note that the property of TTJ Greenfuel Pte Ltd was carried at $14.3m SGD as of July 31, 2021, while the property, plant and equipment of TTJ Green Energy (Thailand) Co Ltd was carried at $8.2m SGD. So these properties should be worth at least $22.5m SGD as well.

It's important to note that these two properties are carried at roughly the price TTJ paid for them. 

The TTJ Greenfuel property at 51 Shipyard Crescent, Singapore, was purchased in 2018 for $16.18m SGD: http://www.ttj.com.sg/newsroom/yr2018/TT...cement.pdf

The TTJ Green Energy (Thailand) Co Ltd property, which has subsequently been upgraded, was purchased for $5.95m SGD in October 2018: http://www.ttj.com.sg/newsroom/yr2018/TT...ailand.pdf

Putting all this together, we can get a sense of the true value of TTJ.

Steel business: $50m — assuming 5x average pretax earnings of $10m
Cash and securities: $43m
Waste management properties and equipment: $22.5m
Total value: $115m
Value per share: 33 cents

I think this is a conservative estimate of value, as it is below the net tangible asset value of the business at January 31 of $128.58m. If the business was sold at NTA, it would be worth roughly 36.8 cents per share.

So really, Mr Teo is paying 10-15 cents per share less than the true value of the company. 

Current offer: 23 cents
Conservative sum of the parts value: 33 cents per share — 44% higher than current offer
Net tangible asset value: 37.8 cents per share — 60% higher than the current offer

Mr Teo's offer is terrible for minority shareholders, and I would encourage everyone to reject it. Mr Teo should improve his offer and pay minority shareholders a fair price.

Like brattzz suggests, minority shareholders should stick together. I would encourage TTJ holders to write to the company to express their displeasure with the current offer. I will be writing to the company myself, and I will also be considering other options to raise awareness of the unfairness of this deal, such as talking to the media.

Good luck to all TTJ holders. Remember, do not accept this poor deal. Mr Teo is enriching himself at the expense of minority shareholders.

Tot big boss teo in agms said he wil look afterinority shareholders, why is he asking us to disembark from his ship? With such an enticing offer price 27% higher than last market price

1H (ended 31Jan22) results announcement..
http://www.ttj.com.sg/newsroom/yr2022/TT...cement.pdf
NAV stood at $128.6m - equivalent to a NAV/share of $0.368 (based on the 349.5m outstanding shares), inclusive a net cash/share of $0.088 - and this is after taking (mainly for accounting prudence) a total of $10.7m for impairment loss in FY20 ($7.6m) and FY21 ($3.1m) on PPE related to the new wood pellet/waste management business, which did not proceed with earlier expansion plans during Covid and due to low oil/energy prices prevailing then. NAV/share and net cash/share would be higher if we add a $1.7m gain and $13.4m proceeds from the recently completed disposal of a factory in Johor. This is before 2H profits form the proven structural business, and any profits from new orders secured and included in the latest $187m order book announced on 11Mar22.

So at $0.23/share to privatise TTJ appears a very low-ball offer indeed, and quite impossible to do the trick.

(29-03-2022, 08:40 PM)BlueKelah Wrote:

(22-03-2022, 09:55 AM)brattzz Wrote: it's not a case of Chairman Teo being too kind, TTJ is not the market-maker in this industry...only when GOV sector's /PTE sector's investors invest in infrastructures, then these investment can trickle down the supply chain, ie, main contractor, then sub-contractor, suppliers....

yes, still remain very undervalued...and may remain so for many years to come...

Thats why this one another value trap!

 if you look at the old posts, some shareholders have so much trust in the boss. But when you look at the offer price, sometimes you wonder if shareholders are being treated fairly... then again, the business economics may not be as positive as it appears to be