TTJ Holdings

[dydx]

A nicely profitable 1H.....
http://info.sgx.com/webcoranncatth.nsf/V...0003227F4/$file/TTJ1HFY2012results.pdf?openelement

[mrEngineer]

TTJ plans to utilise approx. $4.0m in unutilised IPO proceeds for the strutting business which seems to have good market opportunities in the near-to-medium term....
http://info.sgx.com/webcoranncatth.nsf/V...3003460C7/$file/Announcement-changeinuseofIPOproceeds.pdf?openelement

Is providing strutting to construction sites a good business? Would forumers who work in the construction industry care to share some insights?

You may wish to compare with yongnam and refer to yongnam s&p initiation coverage analyst reports for more information on struts. A high capex business as the struts can be considered as PPE if reused.

[dydx]

I read with some amusement today's (25Mar12) NextInsight report on bigger competitor Yongnam.....
http://www.nextinsight.net/index.php/sto...ive-growth
The report first described an investor's posting on a Facebook forum about his frustration on Yongnam as a stock lacking enough upward price movement in the past few months, despite the company having reported a higher NP for FY11 (ended 31Dec11) together with a strong order book, and is also paying out a higher $0.01/share Final dividend.

But I suppose the same investor may not have realised that a large portion of Yongnam's business and profits as well as its order book comes from providing steel strutting to many infrastructural projects in Singapore, and Yongnam has financed the required massive investment in steel struts inventory todate by having also taken on a massive amount of debts (31Dec11: gross debts of >$115.0m, and net debts of >$87.0m). I suppose what this simply means is that when the construction work of all the underlying infrastuctural projects are finally completed, Yongnam would end up having a massive amount of used steel struts (which of course can be sold as steel scraps!) in its yards, after paying off the related debts. As an investor, I wouldn't want to be the owner of a big mountain of used steel struts!

Of course, in Yongnam, there is also this quite large dilution impact from the existing warrants and ESOPs coming. So, all-in, I guess Mr Market - as reflected by Yongnam's daily active share dealings and good volume transacted - is not stupid in this case!

On the other hand, TTJ is a real contrast - the counter has been creeping upwards steadily and quietly since mid-Oct11 - backed by only a small volume transacted in most days - from its recent low of $0.14 level, to reach $0.185 last Friday (23Mar12) at the close. TTJ only has a very small exposure in strutting which I understand is also structured differently with the main contractor(s) concerned. Of course, TTJ also has a nice pile of net cash and a steadily profitable workers' dormitory business.

[dydx]

Today (2Apr12), the Ng Family behind Tat Hong Group, through their private investment company TH Investments Pte Ltd, has added another 1,265 lots (out of a total 1,291 lots transacted).....
http://info.sgx.com/webcorannc.nsf/Annou...endocument
and paid (based on the transactions record) between $0.199 to $0.205/share.

With today's purchase, TH Investments Pte Ltd now owns a total direct and beneficial interest of 15.11% in TTJ, purchased at a total cost of approx. $10.6m since TTJ's IPO in Apr10. There should be little doubt that the Ng Familiy is already a serious investor in TTJ.

[dydx]

Again I had to take a glimpse of bigger competitor Yongnam's latest 1Q numbers.....
http://info.sgx.com/webcoranncatth.nsf/V...A00218201/$file/YHL-Unaudited_FS-31_March_2012.pdf?openelement
While the company's large $469m order book is indeed impressive, I am a little subdued by the large total gross debts of $100m (net: $87m) and another $40m owed to trade creditors. My main concern remains the huge inventory of steel struts held under the $309m PPE. How's Yongnam going to deal with it when the MRT contracts are completed? As it is now, steel prices have already fallen by some 10% in the past 12 months.

[dydx]

UIC has just announced the award of the main building contract - valued for approx. $337m! - for the redevelopment of the existing old UIC Building down at Shenton Way to Korean contractor Samsung C&T Corp, with work sceduled to commence in Sep12......
http://info.sgx.com/webcoranncatth.nsf/V...10031F209/$file/Announcement.pdf?openelement

I think it is relevant to note that Samsung C&T Corp is a long-time customer of TTJ, so there should be a role for TTJ in providing structural steel and related construction sevices to this big project.

[Nick]

Wow...who managed to collect 50 lots at 10.5 cents today !

Not vested

[pianist]

r u kidding? 10.5 cents?

[valuenewb]

r u kidding? 10.5 cents?

I am quite certain the poor guy was trying to get out of TT International.... With his trembling hand, he clicked wrongly and shortsold TTJ unwittingly....

[wsreader]

I realised there is value in listing a company under the name SIB for ten cents a share. Some trembling hand buyer may do wonders to the stock price