Tiong Seng Holdings

[dydx]

After its recent 2-into-1 share consolidation exercise first announced on 25Jun15 - when the share price was at $0.136 - Tiong Seng has today (17Sep15) resorted to buying back its own shares to bring the market price back to the $0.20 level.....
http://infopub.sgx.com/Apps?A=COW_CorpAn...9d958eb83d

Against its revised NAV/share of $0.5634 (based on 2X the NAV/share of $0.2817 as at 30Jun15 before the 2-into-1 share consolidation), Mr Market is now pricing the post-consolidation Tiong Seng share at only 35.5% of its corresponding NAV/share.

[dydx]

Tiong Seng has secured a nice and good-size $72.9m contract from LTA to build the new Sungei Seletar bus depot.....
http://infopub.sgx.com/FileOpen/TSH%20An...eID=375978

Since 26Aug12, on which day Tiong Seng hit the lowest point since listing at $0.155 and closed at $0.18, based on the closing share price today (30Oct15) at $0.235, this counter has advanced a respectable 30.5% in the last 3 months.

[dydx]

3Q result first released on 13Nov15.....
http://infopub.sgx.com/FileOpen/TSH%203Q...eID=378268 [3Q result announcement]
http://infopub.sgx.com/FileOpen/TSH%203Q...eID=378269 [press release]

While the prevailing operating conditions in Singapore are tough, Tiong Woon's well-established Construction Div. has remained a steady profit-generator in the last 2 years at least. As for the loss-making PRC-based Property Development Div., with approx. $129.0m in gross development value sold as at 30Sep15 - which will be recognised as revenue over time in accordance with Tiong Woon's revenue recognition policy, hopefully it would be able to see day-light soon.

[cyclone]

Tiong Seng bags $69.9 million contract awarded for development of Ulu Pan Bus Depot. Last time, it was awarded $72.9 million contract for the development of Sungei Seletar Bus Depot

[dydx]

Interesting announcement.....
http://infopub.sgx.com/FileOpen/Tiong%20...eID=403510
Precast tunnel segments produced by the j-v - 44% Tiong Seng, 51% Geostr (Japanese), and 5% Marubeni-Itochu (Japanese) - in Johor, Malaysia, will be targeted at underground infrastructure projects in Singapore and Malaysia.

More info on Geostr.....
http://www.geostr.co.jp
http://in.reuters.com/finance/stocks/com...bol=5282.T

[dydx]

CEO Pek Lian Guan through his wife bought $250,000 of Tiong Seng's 4.75% notes due 2018.....
http://infopub.sgx.com/FileOpen/_eFORM1V...eID=404994

As an alternative, wouldn't it be a better bet if his wife used the money to buy Tiong Seng shares at the prevailing historically low prices? This could be potentially more profitable bearing in mind that Tiong Seng's 1Q result carries some early signs of a likely profit turnaround could be in the making.....
http://infopub.sgx.com/FileOpen/1Q2016%2...eID=403887 [1Q-FY16 result announcement]
http://infopub.sgx.com/FileOpen/Press%20...eID=403888 [Press relaese]

[BlueKelah]

CEO Pek Lian Guan through his wife bought $250,000 of Tiong Seng's 4.75% notes due 2018.....
http://infopub.sgx.com/FileOpen/_eFORM1V...eID=404994

As an alternative, wouldn't it be a better bet if his wife used the money to buy Tiong Seng shares at the prevailing historically low prices? This could be potentially more profitable bearing in mind that Tiong Seng's 1Q result carries some early signs of a likely profit turnaround could be in the making.....
http://infopub.sgx.com/FileOpen/1Q2016%2...eID=403887 [1Q-FY16 result announcement]
http://infopub.sgx.com/FileOpen/Press%20...eID=403888 [Press relaese]

being insider they probably know what they are doing.

It is likely they know that tiong seng future return will be less than the steady 4.75% they could "extract" from the company's note.

[cyclone]

Financial Results for the year ended 31 December 2016 (FY2016)

Highlights:
1. Revenue surged 37.3% to record S$774.3 million due to higher revenue recognition of construction contracts and property development projects
2. Net profit attributable to shareholders surged 49.4% to S$15.289 million.
3. NAV per share as at 31 December 2016 was 57.31 cent versus today's closing price of 24.5 cent
4. Proposed first and final dividend of 0.8 cent for FY2016 versus 0.5 cent for FY2015
5. Gearing ratio as at 31 December 2016 was 0.55 compared to 0.93 as at 31 December 2015
6. Construction order book remains robust at approximately S$1.0 billion extending till year 2020
7. Creation of a new civil engineering business unit to target public sector projects.

More details in :
1. http://infopub.sgx.com/FileOpen/4Q%20FY2...eID=440756
2. http://infopub.sgx.com/FileOpen/Tiong%20...eID=440757

[TUBInvesting]

It has been a while since I shared any of my articles here. Anyway I have been trying to accumulate this counter but their share buyback has been too aggressive.

Summary of post:

Pros:
1. State of Art Technology
2. Share buyback
3. High Order book
4. 30% stake in Goodwood Grand
5. Future developments

Cons:
1. High Liabilities
2. Development in China


In my opinion, it is more of a growth counter. 

http://tubinvesting.blogspot.sg/2017/09/...unter.html

<Vested>

[karlmarx]

Although Tiong Seng has a very high order book, it does not seem to be growing. And it has not been able to translate that into high(er) earnings for itself, or for its shareholders.

1) Average FCF of -$3.6m/year, over 11 years. Over the long-term, it has been losing money. Whether FCF will continue to be positive in the coming years remain to be seen.

FCF
FY16: $138.8m
FY15: $16.6m
FY14: -$10m
FY13: $5.6m
FY12: -$28.3m
FY11: -$130.4m
FY10: -$6.7m
FY09: $64.2m
(IPO) FY08: -$33.9m
FY07: -$22.7m
FY06: -$37.6m

2) Average dividends of $4.7m/year over 8 years. Or $37.9m in total. At least there's something for shareholders. That's not too bad.

Dividends
FY16: $2.2m
FY15: $1.8m
FY14: $5.5m
FY13: $7.6m
FY12: $7.2m
FY11: $7.6m
FY10: $6m
FY09: $0

3) But if the company isn't generating free cash, from where does it pay out dividends? Tiong Seng also raised net proceeds of $48m during its IPO. This more than covers the total dividends of $37.9m paid out since.

4) Until recently, total debt has been increasing since IPO. Based on its latest quarterly, total debt is still about $125m.

Total debt
FY16: $176.3m
FY15: $298.8m
FY14: $297.6m
FY13: $252.0m
FY12: $238.0m
FY11: $200.5m
FY10: $57.0m
FY09: $41.4m

It is likely that debt was used to finance their projects, which in totality have not been FCF positive. If anyone has benefited from Tiong Seng, I will say it is their bankers, subcontractors, and directors.

How much will you pay to buy for Tiong Seng?