Tiong Seng Holdings

[dydx]

I have finally found the time to review Tiong Seng's FY12 (ended 31Dec12) full-year results.....
http://info.sgx.com/webcoranncatth.nsf/V...E003BFFB6/$file/FY2012announcement26Feb.pdf?openelement [result announcement]
http://info.sgx.com/webcoranncatth.nsf/V...E003BFFB6/$file/TiongSengFY2012pressrelease.pdf?openelement [press release]

Notwithstanding a much lower revenue and a loss recorded in the Property Development division (mainly engaged in developing residential properties in 2nd- and 3rd-tier cities in PRC, and revenue and profit/loss recognition of the projects are subject to completion of their construction of the projects and delivery of the units to their buyers), I thought Tiong Seng did well on an overall group basis and especially in the all-important Construction division (mainly engaged as a general contractor in Singapore). In FY12, Tiong Seng recorded an EPS of $0.0336, and a respectable ROE of 12.8%; NAV/share rosed to $0.289 as at 31Dec12.

I now look forward to the $0.01/share Final dividend which should be paid by end-May12.

Rationally speaking, I thought Mr Market should be willing to price Tiong Seng as a very well-established general contractor - and a steady profit generator - at least at a small premium over its NAV/share.

[dydx]

Tiong Seng was featured in a NextInsight article dated 3Mar12 (last Sunday).....
http://www.nextinsight.net/index.php?opt...1&Itemid=1
and through a link in the article, I also chanced upon a 10Jun12 article written by National Development Minister Khaw Boon Wan in his blog on his visit to the Tiong Seng Prefabrication Hub at Tuas.....
http://mndsingapore.wordpress.com/2012/0...llar-view/

Tiong Seng's businesses have good potential!

[dydx]

Today (25Mar13), Tiong Seng announced having added another 2 major residential construction contracts amounting to $223.4m.....
http://info.sgx.com/webcoranncatth.nsf/V...9003BCD26/$file/ECOSANCTUARYANDSPRINGSIDEANNOUNCEMNT.pdf?openelement [announcement]
http://info.sgx.com/webcoranncatth.nsf/V...9003BCD26/$file/TiongSengPressReleaseSpringsideandEcoSanctuary.pdf?openelement [press release]

[dydx]

Tiong Seng has taken the first step to engage the promising market of Myanmar, by having entered into a MOU with Shwe Taung Development Co Ltd - understandably one of the most prominent business groups in Myanmar - to eventually establish a 30:70 joint venture company to set up and operate a precast plant to supply precast components to construction projects in Myanmar.....
http://info.sgx.com/webcoranncatth.nsf/V...500326A31/$file/TiongSengPressReleaseMyanmarprecastMOU.pdf?openelement [press release]

For country risks consideration, I think it is good and prudent that Tiong Seng plans to take up only a 30% minority equity position in the proposed j-v.

[dydx]

Following yesterday's announcement on the signing of a MOU with Shwe Taung Development Co Ltd, today (24Apr13) DBS Group Research issued an update report on Tiong Seng and re-affirmed a target price of $0.33....
http://www.remisiers.org/cms_images/rese...h_buy_.pdf

[Shrivathsa]

Did not seem to help, as share seems to have slid to 18.6 cents

[psslo]

Following yesterday's announcement on the signing of a MOU with Shwe Taung Development Co Ltd, today (24Apr13) DBS Group Research issued an update report on Tiong Seng and re-affirmed a target price of $0.33....
http://www.remisiers.org/cms_images/rese...h_buy_.pdf

Hi dydx,

I could not find the report in the link. The only report I managed to google was published by DBS on Mar 5, 2014. And it had a price target of 20c with a hold recommendation based on increased cost of business, low margins & poor outlook.

I had a glance at the financials - high inventory & receivables, ie high working capital that is slow to transform to cash, and therefore elevated levels of debt. Because of the poor cash flow, it had to resort to issuing stocks.

Not sure where you see the silver lining?

[CityFarmer]

Tiong Seng wins $107.7 million PUB contract to construct Stamford diversion canal

Tiong Seng Holdings says wholly-owned subsidiary, Tiong Seng Contractors, has been awarded a contract from PUB, the national water agency, for the proposed construction of the Stamford Diversion Canal Phase 2.

The project involves the construction of the canal from Grange Road at the Orchard Boulevard junction to River Valley Road.

The contract is worth $107.7 million and will start in November.
...
http://www.theedgesingapore.com/the-dail...canal.html

[dydx]

2Q (ended 30Jun15) result just out.....
http://infopub.sgx.com/FileOpen/2Q2015%2...eID=365334 [result announcement]
http://infopub.sgx.com/FileOpen/2Q2015%2...eID=365333 [press release]

GPM of the core Construction Contracts segment has improved to 9.5% (from 5.8% in 1H-FY14). Based on the latest order book standing at approx. $1.6b, there is enough work till 2020. It is important to note that as at 30Jun15, Tiong Seng has contracted to sell approx. $110.0m in gross development value of 3 of its residential property development projects in PRC, but such sales have yet to be recognized as revenue in accordance to Tiong Seng's revenue recognition policy. So quite a lot of cash will soon come in, which should be first used to repay the related project debts.

[dydx]

Shareholders should take note that trading for the 2-into-1 consolidated shares started 9.00 a.m. on 26 August 2015 (Wednesday).....
http://infopub.sgx.com/FileOpen/TSH%20-%...eID=366152