TTJ Holdings

(05-06-2013, 01:03 PM)dydx Wrote: I find this recent announcement on IPT rather interesting.....
http://www.ttj.com.sg/newsroom/yr2013/AO...ctions.pdf

Based on TTJ's FY12 (ended 31Jul12) AR, the Ng Family - the founders and controlling shareholders of Tat Hong Group - through their private investment holding companies (TH Investment P/L, and Chwee Cheng & Sons P/L) held a combined 15.42% stake in TTJ as at 17Oct12. Does this mean that the Ng Family prefers TTJ to Yongnam as an investment opportunity and business partner?

Could it be it is easier for them to gain control over TTJ rather than Yongnam if they want to? Afterall, its capitalisation is only a quarter of that of Yongnam?

11Jun2013: Structural Steel Specialist T T J wins $42 million new contracts in Singapore and Malaysia, lifting TTJ's order book to S$164million. I think it is not too bad.

Secures another contract in Malaysia
Clinches more contracts from Jurong Island
Cements leading position in civil defence shelter doors

I like how TTJ has been a steady performer, clinching an overseas project and it enjoys a diverse range of clients. I don't foresee steel prices to rebound yet, margins should be remain in tact.

http://info.sgx.com/webcoranncatth.nsf/V...7002FC81C/$file/TTJwins42mInNewProjects11Jun2013.pdf

TTJ's business performance is indeed highly impressive!

(11-06-2013, 06:49 PM)kelvesy Wrote: 11Jun2013: Structural Steel Specialist T T J wins $42 million new contracts in Singapore and Malaysia, lifting TTJ's order book to S$164million. I think it is not too bad.

Secures another contract in Malaysia
Clinches more contracts from Jurong Island
Cements leading position in civil defence shelter doors

I like how TTJ has been a steady performer, clinching an overseas project and it enjoys a diverse range of clients. I don't foresee steel prices to rebound yet, margins should be remain in tact.

http://info.sgx.com/webcoranncatth.nsf/V...7002FC81C/$file/TTJwins42mInNewProjects11Jun2013.pdf

Past 12month revenue = $152m.
Current order book barely equivalent of 13months revenue, is this a concern?

(11-06-2013, 11:31 PM)PkNanas Wrote: Past 12month revenue = $152m.
Current order book barely equivalent of 13months revenue, is this a concern?

I haven't drawn up a correlation between the performance of the company against the size of their order books. Different projects will have different profit margins, and to be completed by FY2013 - FY2015. Dorm segment contributes about 10++% to their overall revenue. I believe the management is capable of sourcing for good projects and they're expanding themselves to Malaysia. To me, I see it as a non-issue for now.

An observation I made: FY2012 (full year) revenue was $142.9m and as at 15 sep 2011, their order book was S$147m.

2 events happened this week for TTJ,

1) Main Contractor of both Yongnam and TTJ, Apline GMBH for the SMRT DTL2 contracts has filed for bankrupty, TTJ's exposure is SGD$8.8millions. (Figure this will be borned/restructured by SMRT later)
2) TTJ's Share price reacted and shedded 10% to 27.5cts on 27 June 2013.
3) TTJ activated their sharebuyback mandate and brought up 200lots at 27.5cts on 27 June 2013, providing a base support.

Thoughts,
1) This is a small "black swan" case, as the end client is SMRT, TTJ will not actually realised the exposure loss, believe SMRT will bear/restructured the project management again.
2) TTJ's sharebuyback shows that price now is of good value.
3) Temporary weakness to share price provides buying opportunities to all.

Buy Buy Buy!!

I believe so too. I added a few lots to my portfolio from this opportunity.

Downtown Line Stage 2 project scheduled to be delayed

a short snippet:

The construction of Downtown Line Stage 2 (DTL2) — which runs through the Bukit Timah Corridor — will be delayed and additional costs will be incurred by the Government after the main contractor Alpine Bau went bust, Transport Minister Lui Tuck Yew said in Parliament yesterday.

Can we say - with certain degree of certainty - that TTJ's exposure is minimized? Does 'additional costs' include costs for new materials AND costs to recover damage suffered by other contractors?

Yes sir, i saw the parliment snippets yesterday on tv, MOT ministar, Mr Lui Tuck Yew! was quite candid about the bust of Alpine... lolz! more problems/headaches for him!
more new trains but no stations/rails to run them!!

Let's see how MOT/LTA/SMRT restructured the Project Management Team, expect more infos to come in.. stay tune!

I am confident TTJ will get their due work performance compensation, will take time though!

May i know what are the competitive advantages of TTJ? Another question is whether the earnings are sustainable year in year out? I thought it is operating in a cyclical industry, except for the dormitory business perhaps? Could dydx or someone with knowledge of the industry kindly enlighten me here?