TTJ Holdings

[johnnydash]

I think TTJ has alot going for it. With a rock solid balance sheet and strong performance metrics.

But the dwindling order book is a real concern, currently at 99 million for the next two years. These projects will be completed in the next two years and so compares unfavourably with the company's revenue of 115 million in the most recent year(only a single year. )

The dwindling order book has probably already fed through into the first quarter results and will likely continue.

While there will be replenishment of order book throughout the year, 99 million is a low figure even as we compare this to its order book amount at various points in year 2013, 130 million and 160 million

The management has shown its mantle. But could the dwindling order book be a reflection of weakening industry conditions. The management can only position the company but cannot change a headwind into a tailwind. Is there any reason to expect the company's order book replinishment to experience a strong drastic surge

Hi!

Thanks! After reading the forum backdated since 1 year, get more or less a feel of how it is coming along?

But just some thoughts on what do you guys think when the 1st quarterly report is out? Since it is a decrease in both Net earnings and revenue, What do you guys interpret this information as?
Is TTJ considered a cyclical company? Since construction takes a long time to build?

Given the low float of 16%, does this means that the volatility of this share price is low?

Thanks for your time!

[calebseah]

I think TTJ has alot going for it. With a rock solid balance sheet and strong performance metrics.

But the dwindling order book is a real concern, currently at 99 million for the next two years. These projects will be completed in the next two years and so compares unfavourably with the company's revenue of 115 million in the most recent year(only a single year. )

The dwindling order book has probably already fed through into the first quarter results and will likely continue.

While there will be replenishment of order book throughout the year, 99 million is a low figure even as we compare this to its order book amount at various points in year 2013, 130 million and 160 million

The management has shown its mantle. But could the dwindling order book be a reflection of weakening industry conditions. The management can only position the company but cannot change a headwind into a tailwind. Is there any reason to expect the company's order book replinishment to experience a strong drastic surge

Hi!

Thanks! After reading the forum backdated since 1 year, get more or less a feel of how it is coming along?

But just some thoughts on what do you guys think when the 1st quarterly report is out? Since it is a decrease in both Net earnings and revenue, What do you guys interpret this information as?
Is TTJ considered a cyclical company? Since construction takes a long time to build?

Given the low float of 16%, does this means that the volatility of this share price is low?

Thanks for your time!

I'm kinda unsure of the situation given the unfamiliarity in this industry. However, aren't they growing their Dormitory business which has a higher margins too?

For the steel structural biz, aren't they looking at tapping into more public and private projects?

Not Vested yet!

[CY09]

Hi TTJ does have an element of cyclical nature in its construction business.

Its construction is dependent greatly on the infrastructural boom by the private or public sector. As I have mentioned previously, we are now experiencing a construction boom by the govt who has realized its infrastructure is sorely lagging. While it is true, TTJ's orderbook has decreased, it is worth noting many major projects have yet to announce award of their tenders, requirement grade A, - North-South Expressway Construction, Wisma Geylang Serai. It seems these projects commencements were delayed along with many smaller govt projects. My hypothesis is that MOM tried to delay several projects as there was a lack of construction workers to do current govt projects such as the hospital at Jurong East.

I believe TTJ will get a portion of the NSE project given its good reputation as sub contractors and the massive scale of this project.

Also, from TTJ's margins, we can see that TTJ is rather conservative when it bids for projects. To boost its orderbook, it can do so by bidding for projects with a lower margin profit projection. I believe TTJ will win more awards if it bids at a lower margins because it has a good reputation within the industry. Who wouldn't want to hire a reputable sub contractor now that he is offering his services at a cheaper rate. Currently, TTJ is like a premium contractor who charges a high price for its work. This results in only a small amt of parties engaging its services.

Lastly do note orderbook is for construction revenue, while TTJ's full year revenue consists of the dorm business revenue as well. From AR14, TTJ's Dorm business was 13.4% of total; it is likely in Q1FY15, Dorm business is approx 20% of total revenue.

<not vested>

[dydx]

Just checked my bank account and noted a nice credit from TTJ's $0.014/share Final dividend for FY14 (ended 31Jul14). Happy to have some extra money for Christmas shopping!

[dydx]

Centurion Corporation and Lian Being are forming a 51/49 j-v to develop, invest and operate a 7,900-bed workers dormitory and a training centre at a parcel of land (under a 23-year lease) located at Jalan Papan, Jurong - close to TTJ's existing 5,300-bed dormitory "Terusan Lodge 1") - for the Association of Process Industry (ASPRI) (a membership-based trade association)…..
http://infopub.sgx.com/FileOpen/23122014...eID=329199
The development project is expected to be completed in 2016 and to cost approx. $200.0m, comprising construction costs based on the design and specifications of the project and land premium payable to the government.

Based on TTJ's latest accounts, Terusan Lodge 1 - which sits on a piece of land leased from BCA and the lease expires in Jan2017 - cost only $18.9m to build in 2008/9, and the land rental is paid yearly.

[CityFarmer]

Centurion Corporation and Lian Being are forming a 51/49 j-v to develop, invest and operate a 7,900-bed workers dormitory and a training centre at a parcel of land (under a 23-year lease) located at Jalan Papan, Jurong - close to TTJ's existing 5,300-bed dormitory "Terusan Lodge 1") - for the Association of Process Industry (ASPRI) (a membership-based trade association)…..
http://infopub.sgx.com/FileOpen/23122014...eID=329199
The development project is expected to be completed in 2016 and to cost approx. $200.0m, comprising construction costs based on the design and specifications of the project and land premium payable to the government.

Based on TTJ's latest accounts, Terusan Lodge 1 - which sits on a piece of land leased from BCA and the lease expires in Jan2017 - cost only $18.9m to build in 2008/9, and the land rental is paid yearly.

It may be the reason of Mr. Teo, who has no further "project" for dorm segment, since few years ago.

Mr. Teo is a very margin-conscious businessman, and will reject businesses if margin doesn't meet expectation.

(not vested, but monitoring)

[CityFarmer]

I post the article here, since BCA report has been always referred by the company AR.

The official release of BCA is here
http://www.news.gov.sg/public/sgpc/en/me...202015.pdf

Public-sector projects to drive construction demand in 2015

Singapore (Jan 9): Having reached a record high of $37.7 billion in 2014, the total value of construction contracts in Singapore to be awarded this year is likely to range from $29 billion to $36 billion as property developers turn more cautious.

Releasing the figures yesterday, the Building and Construction Authority (BCA) expects construction demand from the private sector to moderate to between $11 billion and $15 billion in 2015 from $18 billion last year.

"Developers may adopt a cautious stance amid a slowdown in private home sales and global economic uncertainties," it said.

The expected decline in construction demand from developers is likely to be partly mitigated by a rise in the number of private-sector civil engineering projects, such as the development of Changi East Runway 3, BCA noted.

Meanwhile, demand from the public sector is expected to hold up.

About $18 billion to $21 billion worth of public-sector construction contracts are expected to be awarded this year, compared to $19.7 billion in 2014.

"While public housing projects are anticipated to moderate this year in consideration of a more stabilised public housing market, public construction demand will remain stable due to an increase in industrial projects and the sustained pipeline of institutional and civil engineering works," BCA said.

The total value of construction contracts to be awarded in the next two years is expected to range from $27 billion to $36 billion annually.

For 2018 and 2019, construction demand is forecast at between $26 billion and $37 billion a year.

The "exceptionally strong" overall construction demand in 2014 was fuelled by a higher volume of institutional and civil engineering construction contracts for projects such as the Sengkang General and Community Hospitals, the Thomson-East Coast MRT Line and land preparation works for the upcoming Changi Airport development, according to BCA.
http://www.theedgemarkets.com/sg/article...emand-2015

[Tiggerbee]

A seller sold down 50 lots all the way from 33.5 to 30.5c. Thanks to the seller, I got some shares at a good price

(Vested)

[butcher]

Does TTJ at current price range around 31 cts presents a good value entry?

[Dividend Hermit]

Valuation can be subjective.
Personally, I bought 30 lots at 0.335 on 6 Jan 2015.

My reasons for getting TTJ:
+ I want exposure to construction sector
+ Low debt
+ Increasing dividends
+ Near NAV
+ Good profit margin
+ Price has soften a bit

Some potential risks:
- Replenishment of Order Book
- Renewal of Dormitory Lease

(Recently Vested)