TTJ Holdings

[brattzz]

https://links.sgx.com/FileOpen/T%20T%20J...eID=684419

T T J achieves a turnaround in FY2021 with a net attributable
profit of S$3.4 million

 First and final dividend of 0.8 Singapore cents per ordinary share proposed
 Healthy order book of S$119 million as at 23 September 2021

yeah!

[brattzz]

https://links.sgx.com/FileOpen/T%20T%20J...eID=692707

ANNEX A
RESPONSES TO QUESTIONS FROM SHAREHOLDERS
Question 1:
Could you elaborate on the low demand of wood pellets business (esp. with projected demands
from S. Korea and Japan)? It would be helpful for us to understand if there are changes in both
supply side (are there increasing competitors in this space) and demand. Do you observe any
regulatory obstacles, both regionally and globally, to this business? Should this business be nonviable (like PPVC), and given that lease for 51 Shipyard Crescent will expire in 2034, are there
any backup plans in mind?
Company’s response
On 22 July 2021, the Group made an announcement on the Share Acquisitions of T T J Greenfuel Pte.
Ltd., T T J Biomass Pte. Ltd. and T T J Green Energy (Thailand) Co., Ltd., which became wholly
owned subsidiaries of the Group following the differences in the business direction with the previous
partner. The Share Acquisitions were undertaken as we sought to obtain full control of the waste
management and treatment business and to relook into the business model.
Although there have been heightened focus on environmental conservation worldwide, the business
potential and viability of our waste management and treatment business has been curtailed by the
current macroeconomic circumstances. Moreover, the outlook for this business remains clouded due
to the prolonged impact of COVID-19 pandemic.
We are currently assessing the waste management and treatment business, including the possibility of
collaborations with potential partners. The structural steel business remains our cores focus and as
such, we intend to prioritise our resources for it.
Question 2:
Please provide guidance about potential new businesses and likely growth areas out of
Singapore? is India part of it?
Company’s response
In the near term, our main focus remains primarily on the structural steel business in Singapore.
Question 3:
Please advise main core focus still continues to be in structural steel business mainly? Wood
pellets biz is on-hold and review status, please also share your insight into this wood pellets biz
since YR2015??? any changes?
Company’s response
Please refer to our response to Questions 1 & 2.
Page 2 of 2
Question 4:
Is company looking at other non-core segments?
Company’s response
Please refer to our response to Question 2.
Question 5:
Is company performance for YR2019/20, considered as conservative, and it appears that
company did not take any advantage/initiatives during the Covid crisis (YR19/20), is
diversification of board/company needed for way forward?
Company’s response
In the last two financial years, Singapore’s construction industry has encountered unprecedented
challenges due to the pandemic. Even so, our structural steel business has been our main revenue and
profit driver. The Group’s top priority now is to deliver the projects that were delayed during the
pandemic and pick up our momentum in revenue generation. In addition, with the prevailing
economic and operating landscape, we believe it is prudent to conserve our resources and remain
cautious in terms of cost and capital management.
Question 6:
Please provide guidance on current workforce's wellness management, COVID health
management, employee's rewards management, what are the management's thought for a very
tight labor market and poaching of good employees?
Company’s response
Our workers are the lifeblood of the company. On an ongoing basis, we invest considerable time and
effort in ensuring their health and mental well-being, particularly since the COVID-19 outbreak. In
the area of health management in relation to the pandemic, we have strict safety protocols in place and
all our staff and workers are trained in these safety measures. Not only are Safe Management
Measures implemented at our workplace and project sites, we encourage vaccination among our
employees and to-date, all of our staff and workers are fully vaccinated.
The Group provides various support services to our migrant workers to help them better adjust to the
post-pandemic working environment. Online counselling courses are available to support workers on
a variety of issues and as movement restrictions for migrant workers residing in dormitories have
eased, the Group has worked with ItsRainingRaincoats and Ministry of Manpower to arrange outings
to local locations of interest for our migrant workers.
In addition, we ensure our workers are covered under various employee benefits and workmen injury
compensation insurance, sponsor them for relevant skills upgrading, and provide fair remuneration
based on a well-structured and open annual performance appraisal system.
Please refer to pages 15-18 of our Sustainability Report 2021 for the full details.

[brattzz]

1HFY2022
Revenue : +35%
Profit : -33%
Cash : 29milo

Review of Group’s performance
For the six months ended 31 January 2022 (“1HFY2022”), the Group reported a revenue of
$31.3 million, an increase of 35% as compared to $23.1 million for the previous
corresponding period ended 31 January 2021 (“1HFY2021”). The increase was mainly due to
the increase in revenue from the structural steel business.

Revenue from the structural steel business increased to $30.6 million in 1HFY2022 as
compared to $23.1 million in 1HFY2021. The lower revenue in 1HFY2021 was attributable to
the post-Circuit Breaker measures implemented which only permitted slow and gradual
resumption of business operations.

The revenue generated by the waste management and treatment business was $0.2 million in
1HFY2022. In 1HFY2021, this segment did not generate revenue as the Group has
temporarily stopped the operations at its Thailand factory since July 2020. The segment
revenue remained relatively low as the COVID-19 pandemic continued to depress demand
and average selling prices during the reporting period.

The Group’s gross profit margin increased from 8.6% in 1HFY2021 to 13.3% in 1HFY2022.
The higher gross profit margin in the current reporting period was due to better gross margins
derived from the projects executed.

Finance income remained at less than $0.1 million in both 1HFY2021 and 1HFY2022.
Other income and gains decreased by 77% from $4.0 million in 1HFY2021 to $1.0 million in
1HFY2022. The decrease was mainly due to decreases in government grants received and
scrap income, and a non-recurring reversal of custom duty import and goods and services tax

Industry Outlook
Singapore’s economy expanded by 7.6% in 2021, rebounding from the 4.1% contraction in
2020. The construction sector expanded by 20.1%, a turnaround from the 38.4% contraction
in 2020, supported by both public and private sector construction works. For 2022, the
Ministry of Trade and Industry (“MTI”) has maintained GDP growth forecast at “3.0% to 5.0%”
in 2022.1
Singapore’s high vaccination rate and steady rollout of booster shots should facilitate further
progressive easing of domestic and border restrictions, alleviating labour shortages in sectors
that are reliant on migrant workers. Activity in the construction sector will continue to recover
on this progressive easing of border restrictions. On the other hand, new work permit policies
for foreign workers in the construction sector aim at increasing productivity and reducing
manpower needs have been announced at the recent Singapore Budget.
2
Therefore, on the
path to recovery, labour shortages are likely to persist in the short term and the output of the
construction sector is expected to remain below pre-pandemic levels throughout 2022.1
The domestic construction sector is also expected to face higher material costs in 2022,
largely from persistent supply chain bottlenecks, alongside rising energy prices due to
geopolitical tensions, which have exacerbated global inflationary pressures.1,3
Meanwhile the Building and Construction Authority (“BCA”) projects the total construction
demand (i.e. the value of construction contracts to be awarded) in 2022 to be between S$27
billion and S$32 billion. 60% of this is expected to be from the public sector supported by
projects in healthcare developments and infrastructure works such as the Cross Island MRT
Line (Phase 1). Over the medium-term, BCA expects the total construction demand to reach
between S$25 billion and S$32 billion per year from 2023 to 2026.4
Order Book and Outlook
As at 7 March 2022, T T J has an order book of $110 million, which it expects to substantially
complete between FY2022 and FY2024, subject to the domestic COVID-19 situation and
prevailing Safe Management Measures.
Although Singapore’s border measures have eased, the supply of foreign workers remains
somewhat unstable. The Group, however, has adequate workers to support and execute the
projects in its existing order book.
The outlook for the waste management and treatment business remains clouded by the
prolonged impact of COVID-19 and the new Omicron variant.

Order Book and Outlook (cont’d)
With inflation, and now the impact of the Russian-Ukraine conflict on steel and other
commodity prices, the Group expects its margins to come under pressure going forward.
Recent Budget 2022 measures to raise foreign worker levy rates and minimum qualifying
salary for EP- and S-pass holders are also expected to impact operations.
The Group will monitor operating conditions closely amid this geopolitical and economic
landscape, and adapt its strategies accordingly. It will continue to be prudent in terms of cash
conservation and cash flow management to ensure its operations remain sustainable in this
challenging environment.

[dreamybear]

https://links.sgx.com/FileOpen/T%20T%20J...eID=692707

ANNEX A
RESPONSES TO QUESTIONS FROM SHAREHOLDERS
Question 1:
Could you elaborate on the low demand of wood pellets business (esp. with projected demands
from S. Korea and Japan)? It would be helpful for us to understand if there are changes in both
supply side (are there increasing competitors in this space) and demand. Do you observe any
regulatory obstacles, both regionally and globally, to this business? Should this business be nonviable (like PPVC), and given that lease for 51 Shipyard Crescent will expire in 2034, are there
any backup plans in mind?
..........

I find that asking questions is a skill by itself. IMO, the first question is good - detailed and specific ; I think the other questions cld be more developed and specific e.g. diversified / non-core segment a company in a similar bizness to TTJ typically has and is successful. 

Of course, what we cannot control is the answers provided. 

In general(not TTJ), it seems that the no. of AGM questions doesn't quite correspond to the no. of shareholders(of course, cannot expect 1 to 1 but I wld expect the Top 20 shareholders to ask many questions given the amount at stake). Maybe they are rich and busy; despite the percentage owned, it is just a small part of their overall wealth. The other possibility is asking directly to investor relations instead of submitting AGM questions. But somehow, I have a feeling that the AGM replies tend to be more comprehensive compared to individual ad-hoc questions, not sure abt other shareholders' experiences.

I think it wld be nice to have a thread on AGM questions, but then again, it cld be a skill / advantage that investors / buddies wld rather keep to themselves. Maybe an enterprising buddy cld develop it as a paid course. 

[brattzz]

Structural steel specialist T T J’s order book
reaches S$187 million on newly-secured projects - Slowly but surely!!

SINGAPORE – 11 March 2022 – T T J Holdings Limited (“T T J” or together with its
subsidiaries, the “Group”) today announced its order book has reached S$187 million on the
back of several new structural steel contracts secured. The Group expects to substantially
complete these projects between FY2022 and FY2024.
T T J’s Executive Chairman, Mr Teo Hock Chwee (张福水) said, “We are encouraged by the
recent set of contract wins during these uncertain times. While constraints on foreign labour
and headwinds such as global inflationary pressures and rising material costs weigh down
the outlook for the immediate term, we believe the construction sector will continue to
normalise as Singapore gradually opens its economy and its borders. Over the immediate
horizon, we will maintain our disciplined approach to managing our resources, so as to
deliver our order book on schedule, and continue to work towards growing the business in a
sustainable manner.”


https://links.sgx.com/FileOpen/T%20T%20J...eID=706841

[dydx]

The latest increase of order book to $187m means TTJ now has over 2 years' of structural steel contracts and work in the bag. What we can hope now is Chairman Teo to show his magic in delivering good profits from the contracts. More importantly, let's hope that upon the expected completion soon of the sale of the group's excess factory and related equipment in Johor for MYR41.7m ($13.8m) - which will raise net cash to in excess of $40m, or >$0.11/share - TTJ would consider paying out a nice special dividend.

[brattzz]

S&P cash will be helpful to TTJ, structural steel biz is slow and steady, Chairman Teo SHALL deliver as his consistent trademark! (else he will be questioned at the AGMs, )

It did seems like their biomass business is stuck/no way out, and company is not sure how to go about it yet,
dividends will increase yes/no, if yes, most likely gradually, while they figure out the bio-mess... if no, based on history of the ex-PPVC biz case, mgmt will hold for long term rather then to sell at loss, or throw more money into it...

So, still structural business focus for at least 2-3 years, look out for increasing book-order to BCA guide...
and stuck biomess biz for 3-5 years, maybe even 7 to 10 yrs!... :O

[valuebuddies]

It's a very shareholder friendly management, good dividend during good time, small dividend even loss making, cash rich, healthy order book.

All good and definitely undervalued, but I suspect 1 issue, boss seems to be too kind, he may have difficulties and reservation in raising its price when it is facing rising raw material costs and higher operating cost due to pandemic. BRC has been doing quite well post pandemic, Nam Lee is recovering, but yet TTJ is still struggling.

I have a small position since many years back when it was undervalued, and the fact is telling me that it has remain undervalued for the past many years and it will possibly remain undervalued for many years to come.

[brattzz]

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...

[dydx]

The latest increase of order book to $187m means TTJ now has over 2 years' of structural steel contracts and work in the bag. What we can hope now is Chairman Teo to show his magic in delivering good profits from the contracts. More importantly, let's hope that upon the expected completion soon of the sale of the group's excess factory and related equipment in Johor for MYR41.7m ($13.8m) - which will raise net cash to in excess of $40m, or >$0.11/share - TTJ would consider paying out a nice special dividend.

Completion of sale is today..
https://links.sgx.com/FileOpen/T%20T%20J...eID=708781