Tiong Woon Corp

[dydx]

FY15 (ended 30JUn15) full-year result released last evening.....
http://infopub.sgx.com/FileOpen/TWCH_Ful...eID=366961 [result announcement]
http://infopub.sgx.com/FileOpen/TWCH_Pre...eID=366963 [press release]

Considering the prevailing tough market conditions in the oil & gas and petrochemical sectors, Tiong Woon's well-established core heavy lift & haulage business has continued to perform quite well. The latest NAV/share at $0.5825 which is backed by conservative accounting provides significant and above-average asset coverage to the last done share price of $0.141.

An unchanged final dividend of $0.004/share declared.

[CY09]

Hi dydx.

Whats your opinion that Tiong Woon had to repay financial lease liabilities to the amount of s$20Mil for the past two years, IN FY13, the amount was 15Mil. It seems to be similar to be related to the purchase of PPE but not reported as a "PPE purchase". This is because there was a similar corresponding increase in PPE value on the balance sheet. Not sure how much more TW has to pay under financial lease liabilities (which I think is PPE) as it is not reported on its balance sheet.

[Clement]

Hi dydx.

Whats your opinion that Tiong Woon had to repay financial lease liabilities to the amount of s$20Mil for the past two years, IN FY13, the amount was 15Mil. It seems to be similar to be related to the purchase of PPE but not reported as a "PPE purchase". This is because there was a similar corresponding increase in PPE value on the balance sheet. Not sure how much more TW has to pay under financial lease liabilities (which I think is PPE) as it is not reported on its balance sheet.

Hi, 

The finance lease liabilities are reported on the balance sheet but the additional borrowing is not disclosed in the cash flow statements. Similarly, only down payments for the new hire purchases are reported as capex in the cashflow statements. 

This was discussed in page 6 of this thread if you wish to examine deeper.

[dydx]

CY09,

I don't know how to answer your question on Tiong Woon's debt servicing on specifically finance lease liabilities, and I believe you have referred to the cash flows statement and group B/S. I believe you should be able to find a lot more info from the FY14 AR.....
http://infopub.sgx.com/FileOpen/Tiong%20...leID=23407

We know Tiong Woon regularly acquires new equipment (mainly all kinds of cranes) to expand, renew and upgrade its equipment portfolio and capabilities. All these are captured in Note 22 (p73) on "Property, Plant and Equipment", which totalled $56.5m in FY14. To pay for them, Tiong Woon can either use its own cash, or borrows a portion of the cost of purchase from banks under medium term loans, or from finance/leasing companies under medium-term hire purchase contracts or leases. All these are captured in Note 24 (p75) on "Borrowings" and in Note 25 (p76) on "Finance lease liabilities". Tiong Woon will have to service/repay all these borrowings plus interests over time from its operating cash flow, which include the group's profits (PBT of $22.8m in FY14), depreciation ($28.8m in FY14), and disposal of older PPE ($10.3m in FY14). Depending on the total capex amount and the operating cash flow generated in a particular year, total borrowings under bank loans and finance leases may rise or fall, as well as for the cash balance in the course of the year and at year-end. With an established operation generating recurrent aftertax free cash flow of over $40.0m a year, and a conservative borrowing profile, Tiong Woon appears to have pretty good financial flexibility so far.

[CY09]

Hi dydx,

Thanks for the guidance. So the classification of finance lease liabilities are part of the borrowings that Tiong Woon reports!

[dydx]

Latest FY15 (ended 30Jun15) AR just out and timely as another good week-end reading item for those who wish to know more about this well-established specialist heavy lift and haulage expert services provider engaging the mostly land-based new large oil & gas (refineries, terminals, storage tank farms, etc.), petrochemical, pharmaceutical, power generation and related plants construction and projects across the Asia region.....
http://infopub.sgx.com/FileOpen/Tiong%20...eID=372433

[dydx]

Tiong Woon has a "Projects Gallery" page in its website which have details and photos of the major projects completed or currently being undertaken.....
http://www.tiongwoon.com/projects-gallery.html

Which other major local crane and heavy lift and haulage service provider have carried out projects in 15 countries in Asia/Middle-East/Africa?

[dydx]

Comparing the just released Tat Hong's 3Q (ended 31Dec15) result.....
http://infopub.sgx.com/FileOpen/Tat%20Ho...eID=389317
with Tiong Woon's 2Q (also ended 31Dec15) result.....
http://infopub.sgx.com/FileOpen/TWCH%20-...eID=388397
it is quite clear that notwithstanding its smaller size, Tiong Woon is doing better under the prevailing tough market conditions.

This is especially so in the all-important crane rental business - named as Heavy Lift and Haulage Division in Tiong Woon - where revenue fell 10% to $31.601m in Tiong Woon's case, vs. a 17.8% fall in total revenue to $70.472m from Crane Rental and Tower Crane Rental in Tat Hong's case.

Tat Hong also has much higher gross and net borrowings, as well as a higher gearing ratio.

[Bibi]

Tat Hong also has much higher gross and net borrowings, as well as a higher gearing ratio.

Tat Hong has positive net current assets while TW has -ve. If financial institutions decide not to extend credit to TW, I think it can either issue rights or go bust. Wow I didnt know TW trading historical low PB. Maybe thats one of the reason?

Not vested in both but always keeping a lookout for stocks trading at extreme low PB.

[karlmarx]

Tiong Woon reported a small profit for the quarter, reducing borrowings slightly and not replacing depreciated PPE. Gearing slightly reduced.

http://infopub.sgx.com/FileOpen/TWCH-1HF...eID=488308