TTJ Holdings

[chew]

Anybody can advise how much was invested in the wood pellet business and when can we expect it to show results good or bad?

Unless I can size up potential loss, and time frame, this will remain an overhang.

[kelvesy]

I was sitting in a Grab a few days ago...

Chatting with a driver who got retrenched from industry. We spoke about a few names like Hor Kew, Hock Lian Seng, Design Studios, TTJ, etc. He mentioned that the industry looks very weak at the moment. Anyone has views on it?

- not vested -

[BlueKelah]

I was sitting in a Grab a few days ago...

Chatting with a driver who got retrenched from industry. We spoke about a few names like Hor Kew, Hock Lian Seng, Design Studios, TTJ, etc. He mentioned that the industry looks very weak at the moment. Anyone has views on it?

- not vested -

The few years before 2019 was bad, but seems there has been some recovery this year. I dont see a big boom in coming years though and do note SG is likely tipping into recession territory in the coming quarters due to trade wars etc, so next few quarters might be flat. But if the government is forced to increased infrastructure projects to stimulate the economy, then likely this sector will be a big beneficiary.

https://www.tradersinsight.news/traders-...w-in-3q19/

[brattzz]

So today i was free and went to attend to TTJ's AGM,

Brief report of TTJ AGM - 28/11/2019, 2.30pm @ Wikiedge@RSM Chloe Meeting Room Level 3,
Crowd of 40+ pax, met 2 regulars seniors, long term shareholders since IPO at 20cts.
Direct, frank and honest management team, just ask your questions and they try to answer!

Company Organisation question,
1) Chairman Teo will not delist/privatised the company, for future plans, they must remain listed (banks take away their umbrella in the storm before they are listed, now banks come to TTJ with many umbrellas even during sunny days!!), any expansion in new biz, will relied on cheap money instead.
2) 10 quarters of contractions, and 3 quarters of expansion, construction biz does not look good...
3) Appreciation of the 0.004 dividends...
4) Chairman Teo still look strong and fire in the belly with his replies, that's good to see and know! firm handshake too!

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Core Biz question, - Structural Steel in construction segment
1) Chairman Teo admits that business cycle is not good for past 3 years, figures charts says it all.
2) Current order book of 182milos, will run for 3 years until 2022, estimating about 60milos per year, (take cue from profits 4milos per year)
2) 1000 tons project in burnei was setup through existing local client, good paymaster, not going into malaysia/indonesia...
3) PPVC biz is risk-added, and out-bidded by over 20 competitors with loss margin... not going to enter this market, admit losses and cut losses.
4) Scary to come from Chairman Teo, "new contracts must at least breakeven"... reflects how bad the construction biz is, think 1997/98..etc..
   3 years ago, he was saying "profit margin must make sense!" ... reality hurts! :O
5) Maintain the bottom line!!! - 38 years of same principals!

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New Biz question - Biomass biz division - overseen by COO, Mr Elvarasu,
1) Will introduce more presentation/visual graphics next year reporting on this new biz
2) Somehow there is a link between Nparks/subcontractors/ supplier of raw materials to this processing Biomass plant biz... it's quite a vague link at the moment, Chairman Teo is saying it's the First in Singapore, so that meant something...Npark is the usecase in this sense.
3) 6k to 8k ton/month = 72K/100k tonnes/annual capacity  - Thailand plant will be operational by end 2020, so 1 more year and counting to see how it works...location of plant is in FTZ as toyota, question of insurances, floodings, safety risk assessment is deem sufficient by management.
4) Singapore Plant @Shipyard road will be same 72K/100k tonnes/annual capacity - and will require CAPAX 10-15 milos over 2 years, 2020 to 2021 progressively
5) About 30milo to setup a biomass plant each, get certifications..and start supplying in contracts!
6) Buyers are gov power plants contracts in Thailand /Baht, Korean US$, Japan US$. (end of year, power plant partial shut down for 3-4 weeks maintance)
7) It's not a commodity, it's a fixed term supply contract
8) Tight-lipped about the cost and profit margins, please do your own guessitmate!  alibaba shows FCC grade wood pellets, it's retail priced US$80 to US$100 per ton, with 20% bulk discount to gov contracts,  so estimate, got 1x plant x US$64/ton x 72Ktons/annual = US$4.5 millions per year revenue for 1 plant... 2x plants = US$9 millions, safety margin discount 30% = US$6 millions, happening in 2022...we'll have to track it via the thai plant first for 2020 to 2021 revenue + US$3 milos?....    exciting!
9) It's not a new technology, it's proven technology, and certified by FCC/TUV/BV.
10) Anyone with 30milos can setup a biomass plant.
11) Political risks associated with environment, greenpeaces, deforestation, carbon credits and equals...etc... noted!

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Main take-away,
1) No rights issues needed.
2) Core biz division - Structure Steel Division - hang in there, tough cycle forseen, maintain profitability, or for 2020 term - at least break-even...!!!! :O :O :O
3) New biz division - Biomass Division - Going online with Thai plant first and soon, subsequently SG plant... to monitor closely, on revenue and profit margins..
4) Chairman will try his best to give out/increase dividends for YR2020, 1 ct is 3 milos to him personally, (85% share-holder )

Hope i didn't miss any!

[brattzz]

UNAUDITED FINANCIAL STATEMENTS AND RELATED ANNOUNCEMENT FOR THE FIRST QUARTER ENDED 31 OCTOBER 2019

A commentary at the date of announcement of the significant trends and competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and the next 12 months.

As at 4 December 2019, T T J’s projects order book stands at $161 million with projects expected to be substantially completed between FY2020 and FY2022.

The Ministry of Trade and Industry Singapore (“MTI”) published its Singapore economy outlook report on 21 November 2019. Taking into account the global and domestic economic environment, MTI expects growth in the Singapore economy to pick up modestly in 2020 as compared to 2019. MTI also projects growth in the construction sector to be sustained in 2020.
Notwithstanding these projections, the Group expects the operating environment to remain challenging given that competition, margin pressures and collection risks in the construction industry have intensified. The Group will continue its proactive and prudent approach to mitigate these headwinds.

To date, the Group continues to receive a good mix of project enquiries from the public and private sectors. It intends to carefully evaluate potential projects to manage its risks.

The waste management and treatment business is relatively new and the Group is in the process of developing this business. The wood pellet manufacturing facility in Thailand recently completed an upgrading which has improved its efficiency and productivity. Production at the manufacturing facility in Thailand is expected to commence in 2QFY2020. The construction of a new-build wood pellet manufacturing plant in Singapore is in progress and is expected to enhance the Group’s production of wood pellet manufacturing upon completion. The Board will continue to update shareholders as and when there are material developments in this business.

[brattzz]

SINGAPORE – 4 March 2020 – T T J Holdings Limited (“T T J” or together with its subsidiaries, the “Group”) today reported a 25% year-on-year (“yoy”) increase in revenue to S$42.4 million for the six months ended 31 January 2020 (“1HFY2020”) from S$33.8 million for the six months ended 31 January 2019 (“1HFY2019”). This was achieved on the back of improved revenue from its structural steel business.

The Group, however, reported lower net attributable profit of S$1.4 million and gross margin of 14.5% in spite of the higher revenue in 1HFY2020, compared to S$1.9 million and 18.4% respectively in 1HFY2019, as projects undertaken by the Group in 1HFY2019 had better gross margins.

It was a strong quarter for the Group. For the three months ended 31 January 2020 (“Q2FY2020”), T T J’s revenue rose 76% yoy to S$26.0 million compared to S$14.8 million for the three months ended 31 January 2019 (“Q2FY2019”), while net attributable profit increased 12% yoy to S$1.0 million from S$0.9 million across the same periods. The improvements in both the Group’s revenue and earnings for the quarter were mainly underpinned by revenue growth in its structural steel business.

Press release: T T J Q2 & 1H FY2020 results
Page 2 of 3
Commenting on the latest set of results, T T J’s Chairman and Managing Director, Mr Teo Hock Chwee (张福水) said, “T T J is pleased to report double-digit revenue growth for both Q2FY2020 and 1HFY2020 due to higher revenue contributions from our structural steel business. We continue to face gross margin pressures from competition as well as an increasingly challenging operating environment in the construction industry. Nevertheless, our order book to-date remains robust at S$139 million and we will continue to develop our waste management and treatment business to diversify and strengthen our income base.”
The Group’s recently-upgraded wood pellet manufacturing facility in Thailand has commenced operations in Q2FY2020, while the construction of its new-build wood pellet manufacturing plant in Singapore is progressing.

Outlook
The Building and Construction Authority’s (“BCA”) outlook on the Singapore construction sector remains bullish for 2020, projecting total construction demand to range between S$28 billion and S$33 billion1 for 2020. Public sector construction demand is expected to account for 60% of the projected demand, spurred by major infrastructure projects including the Integrated Waste Management Facility, infrastructure works for Changi Airport Terminal 5, as well as the Jurong Region and Cross Island MRT lines. Meanwhile, private sector construction demand, projected to range between S$10.5 billion and S$12.5 billion, will continue to be supported by projects such as the redevelopment of en-bloc sale sites, and recreational developments at Mandai park, Changi Airport net taxiway, and berth facilities at Jurong Port and Tanjong Pagar Terminal.

T T J’s project order book stands at S$139 million as at 4 March 2020, which is expected to be substantially completed between FY2020 and FY2022. The Group continues to receive a mix of project enquiries from the public and private sectors, and plans to carefully evaluate potential projects to manage its risks.

CESSATION OF QUARTERLY REPORTING
The Board of Directors of T T J Holdings Limited (the “Company”, and together with its subsidiaries, the “Group”), wishes to update Shareholders that following recent amendments to Rule 705(2) of the SGX-ST Listing Manual which came into effect on 7 February 2020, the Company will be ceasing quarterly reporting with immediate effect.
The Board has, after due deliberations, taking into consideration the compliance efforts required in connection with quarterly reporting, decided to prepare and publicly release the financial statements of the Company only on a semi-annual basis.
Accordingly, the Company’s next financial results release shall be in respect of the full year ending 31 July 2020, which will be announced via SGXNet on or before 29 September 2020.

[dydx]

Based on TTJ's operating track record, and that of its competition, in the structural steel industry domain, if TTJ under the current management can't make money, it is difficult to imagine other players can.

[karlmarx]

So today i was free and went to attend to TTJ's AGM,

Brief report of TTJ AGM - 28/11/2019, 2.30pm @ Wikiedge@RSM Chloe Meeting Room Level 3,
Crowd of 40+ pax, met 2 regulars seniors, long term shareholders since IPO at 20cts.
Direct, frank and honest management team, just ask your questions and they try to answer!

Good information here.

When a company has to pivot into another industry, the management must have considered that the long-term economics of its present businesses may no longer be as good as before. At least not good enough to be putting more capital into it.

The new business is likely to generate low ROA, may be slightly higher if they manage it efficiently. But being new to it, the likelihood of efficient management is not high. 

So most of its cash will likely be consumed by this new business, over the years. This means that it will have no cash, a possibly weak structural steel business, and an unproven biomass business. Shareholders will have to wait some time before seeing any possible contribution from their biomass plant.

[brattzz]

https://www.businesstimes.com.sg/compani...1587286821

STRUCTURAL steel fabricator TTJ Holdings said on Sunday that six foreign workers employed by its unit TTJ Design and Engineering have been identified as confirmed cases of the Covid-19 infection.

TTJ Design and Engineering, at 57 Pioneer Road, was named as a new infection cluster on Saturday.

TTJ had closed all its workplace premises in Singapore from April 7 to May 4 as it does not provide essential services, but TTJ Design and Engineering continues to operate an on-site foreign workers dormitory at 57 Pioneer Road.

The group said: "On being notified of the links of the confirmed cases of the Covid-19 infection, the company had taken prompt action and isolated all employees who have had direct contact with the confirmed cases.

TTJ hit by COVID19!

[brattzz]

Structural steel specialist T T J grows order book to S$191 million with new projects worth S$52 million

SINGAPORE, 28 April 2020 – T T J Holdings Limited (“T T J” or together with its subsidiaries, the “Group”) today announced it has secured several new structural steel contracts worth S$52 million. The new contracts, comprising a mixture of projects from both public and private sectors, will lift the Group’s order book from S$139 million as at 4 March 2020 to S$191 million to date.

The Group expects to substantially complete these projects in its order book between FY2020 and FY2022. For the avoidance of doubt, the Group’s workplaces are currently closed, and the Group will resume workplace activities after the expiry of the enhanced safe distancing measures which currently require the suspension of activities for non-essential workplaces until 1 June 2020.

T T J’s Chairman and Managing Director, Mr Teo Hock Chwee (张福水) said, “We are extremely heartened to be able to secure sizeable new projects despite the Covid-19 pandemic, which has dampened most economic and business activities in Singapore. Currently, our main priority is to ensure that our employees and workers are well protected, and that we are operating our business sustainably during these unprecedented times. We are taking mitigating measures to ensure that our people are healthy, our operations are strong, and our costs are well-managed. Our solid S$191 million order book as of now will put us in good stead to ride through this period.”