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TTJ has just completed the acquisition of a new business - converting wood/agri wastes into wood pellet (a relatively new source of bio-energy fuel) in Thailand for export sales to the world market - with Union Sangthong Part Centre Co., Ltd ("USPT") at a seemingly low-entry price of approx. $6.0m in a mortgagee (Krungthai Bank) sale deal...
http://infopub.sgx.com/FileOpen/TTJ%20-%...eID=529296 [completion announcement dd 11Oct18]
http://infopub.sgx.com/FileOpen/TTJ%20-%...eID=528442 [proposal announcement dd 4Oct18]
http://www.ustppellet.com/scale/ [USPT website]
https://www.youtube.com/watch?v=Lq_Ml7hP...e=youtu.be [video of USPT's manufacturing plant operations]
From the USPT website, it appears that if proven to be viable under TTJ's ownership and management, this new business has quite a lot of growth/expansion possibilities in the future.
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Sums up the construction scence in sg...
FY2019
1) Revenue down 17%
2) Gross margin down to 15.8% nett profit only 5%..
3) Profit before tax down to $4.2m,
4) Earning per share drop to 1.08 cts
5) Cash and cash equal : $39.3m
6) Still issue dividends : $0.004...!
Moving forward, the Group expects the operating environment to be increasingly challenging amid ongoing macroeconomic uncertainties and Singapore’s declining GDP growth estimates, although the Building and Construction Authority (“BCA”) has projected stronger construction demand over the medium term, at between S$27 billion and S$34 billion per year for 2020 and 2021.
Nonetheless, T T J has managed to secure a strong project order book of S$182 million as of 23 September 2019, which is expected to be substantially completed between FY2020 and FY2022. The Group also continues to receive enquiries from a mix of public and private sector projects.
Commenting on the Group’s FY2019 performance, Mr Teo Hock Chwee (张福水), Chairman and Managing Director, says: “Despite operating challenges and increasing competition over FY2019, T T J continues to maintain a healthy order book that is expected to contribute to the Group’s income over the next few years.”
“We remain positive on the Group’s prospects as we continue our ongoing diversification into the wood pellet manufacturing business, where we have commenced enhancement and testing of the wood pellet manufacturing machinery at our facility in Thailand. Construction works are also underway at our wood recycling plant in Singapore to, amongst others, further enhance our production line as we prepare for anticipated growth in demand for wood pellets in Asia.”
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR!
4) In BULL, SELL-SELL-SELL!
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02-11-2019, 12:39 PM
(This post was last modified: 02-11-2019, 12:45 PM by dydx.)
FY19 AR just out and makes good weekend reading..
https://links.sgx.com/FileOpen/T%20T%20J...eID=584063
If TTJ's diversification into producing wood pellets in SG and Thailand (from wood and agricultural wastes) as a biomass fuel for power generation is proven successful, all the trees in SG planted and maintained by NPark and the abundant agri wastes (e.g. from coconut/fruits trees, etc.) in Thailand will become this new business' raw material hinterland.
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(02-11-2019, 12:39 PM)dydx Wrote: FY19 AR just out and makes good weekend reading..
https://links.sgx.com/FileOpen/T%20T%20J...eID=584063
If TTJ's diversification into producing wood pellets in SG and Thailand (from wood and agricultural wastes) as a biomass fuel for power generation is proven successful, all the trees in SG planted and maintained by NPark and the abundant agri wastes (e.g. from coconut/fruits trees, etc.) in Thailand will become this new business' raw material hinterland.
It will also be able to grow this business in malaysia, indonesia, basically many other parts of the world with trees 
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04-11-2019, 10:33 AM
(This post was last modified: 04-11-2019, 10:36 AM by BlueKelah.)
(03-11-2019, 11:23 PM)money Wrote: (02-11-2019, 12:39 PM)dydx Wrote: FY19 AR just out and makes good weekend reading..
https://links.sgx.com/FileOpen/T%20T%20J...eID=584063
If TTJ's diversification into producing wood pellets in SG and Thailand (from wood and agricultural wastes) as a biomass fuel for power generation is proven successful, all the trees in SG planted and maintained by NPark and the abundant agri wastes (e.g. from coconut/fruits trees, etc.) in Thailand will become this new business' raw material hinterland.
It will also be able to grow this business in malaysia, indonesia, basically many other parts of the world with trees
Wood pellet business is leading to massive deforestation and burning wood pellets produces more CO2 than traditional coal as it is less energy dense, though less of other pollutive gases hence widespread adoption in Europe, and booming wood pellet production from USA side, as Europe have some climate regulations for their power plants.
Should there be a change in energy/environmental policy regarding wood pellet fuel, the whole market will collapse.. A lot of wood is needed for production, i seriously doubt SG planted trees and agri waste in thailand in sufficient. lets not forget competition from companies who are doing recycled wood products like LHT for the source material.
Diworsification?
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No choice leh, the boss refuse to give back money, choose to buy wood business, must show some support, hopefully he is right
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04-11-2019, 06:02 PM
(This post was last modified: 04-11-2019, 06:14 PM by BlueKelah.)
(04-11-2019, 04:42 PM)money Wrote: No choice leh, the boss refuse to give back money, choose to buy wood business, must show some support, hopefully he is right
Dont buy this counter lah.
Is always the same story, company keep the money, then invest in some other business, then make losses, then sell off the loss making co. at a loss. Its very rare for a listco to diversify into a non related sector and be successful.
If TTJ want growth should be looking at expanding into other asean countries or even americas. After all they are very good at what they currently doing.
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TTJ cannot complete with other companies overseas, boss Teo knows, 
look at yongam... tried overseas and not doing well too...
I am curious about this wood pellets biz... and japan / korean power stations going online in 2020.... would like to know what's the volume/revenue needed?
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR!
4) In BULL, SELL-SELL-SELL!
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NParks has planted trees everywhere in SG, and they trim the trees along roads big or small under an ongoing programme. How much wood wastes - including other sources, like old wood pallets - is SG producing everyday? A few hundred tonnes perhaps.
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AGM is this 28th Nov, at Auditor's place, 2.30pm, anybody interested to join in?
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR!
4) In BULL, SELL-SELL-SELL!
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