TTJ Holdings

[Terry]

Date book order
5-Sep-17 million SGD 152
26-Sep-16 million SGD 48
15-Oct-15 million SGD 130
20-Oct-14 million SGD 119
21-Oct-13 million SGD 151
17-Oct-12 million SGD 162
19-Oct-11 million SGD 181
29-Sep-10 million SGD 110

book order in same range as 2013

[brattzz]

also need to look at the profit margins...

[karlmarx]

In a surprise move, TTJ announced its intention to enter the business of constructing and operating waste management facilities, such as waste-to-energy plants.

http://infopub.sgx.com/FileOpen/TTJ%20-%...eID=476436

In order to finance this new business, TTJ plans to utilize its $82m cash pile. The smallest plant costs about $50m. Depending on the size of the plant they wish to construct, TTJ may use all of its cash and then borrow more. Since the boss owns 72.9% of the company -- making this a done deal -- I guess shareholders hoping for a big dividend from the cash pile can only rebuke the management at the AGM.

It will be another 3-4 years before we see the returns generated from their new business.

[brattzz]

i say, go for it!

about time TTJ looks for another source of revenue! WTE plant what-nots, very exciting days ahead!!

http://www.nea.gov.sg/energy-waste/waste...ion-plants

http://www.channelnewsasia.com/news/busi...la-8242794

https://d2oc0ihd6a5bt.cloudfront.net/wp-...gapore.pdf

[smallcaps]

Dun think its to receive dividend. Transfer to nominee account assumed its to borrow money. No need to borrow already then shift back to own CDP.

What's interesting is how come Mr Teo is not transferring all the shares out from CIMB after receiving the 8 cents dividend. Still got 50 mil shares not transferred out...

Is this the reason? Loan out money for waste management investment...

http://infopub.sgx.com/FileOpen/TTJ-Prop...leID=33054

2.7 Background on the Interested Prospective Partner

2.7.1 Mr Elavarasu Somasundaram, the current Chief Operating Officer of the Company (“COO”) is a shareholder and director of a prospective partner which the Group is currently in discussion with (the “ Interested Prospective Partner”). It is through Mr Elavarasu Somasundaram that the Company came to know of the Interested Prospective Partner, as Mr Elavarasu Somasundaram had been previously acquainted with the parties in the Interested Prospective Partner and therefore came to know of their waste management business (the “Business”). As Mr Elavarasu Somasundaram felt confident of the prospects of the Business, he sought the fi nancial support of Mr Teo Hock Chwee, the founder, Chairman and Managing Director of the Company, to make an investment in the Business. Mr Teo, in his personal capacity, subsequently provided a loan to Mr Elavarasu Somasundaram (the “Loan”). Mr Elavarasu Somasundaram then made an investment in the Business in 2015 and subsequently formally became a shareholder of the Interested Prospective Partner in 2016. 

[karlmarx]

It seems that Mr Teo already has in mind a JV partner for this new business.

I'm curious to know who this partner is, and what they plan to do. Perhaps a smaller player in waste management with technical knowledge but lacking in financial strength to build a WTE plant.

[brattzz]

yes! to go all-in 82millions cash pile with estimate for rights issue, we are looking at below 200milos capex?
where are they going to build this WTE plant?

[brattzz]

Structural steel specialist secures new contracts bringing total
order book to $170 million
SINGAPORE – 24 November 2017 – T T J Holdings Limited (“T T J” or together with its subsidiaries, the
“Group”) today announced it has secured a series of new contracts, boosting its latest total order book
from $152 million recorded on 25 September 2017 to $170 million today.

....

Looking ahead, ample opportunities, especially from public
infrastructure construction, continue to exist in the market and we hope to sustain this momentum in
our order book building.”

[brattzz]

anyone attended the AGM/EGM? can you spare an update? I was unable to attend it this year...
Thank you in advance!

[lavue]

TTJ's share price has corrected from a high of $0.45 in Jun 2017 to $0.30 currently, reflecting a 33% drop.

It seems that the market doesn't like these 3 points:
1. Loss of dormitory business, which previously contributed to consistent and growing earnings with a profit margin of 30+%
2. Lumpy nature of earnings for the structural steel business, with a lower gross profit margin of around 15-20%. This is slightly mitigated by the fact that the order book rose to an all-time high of $170m.
3. Uncertainty surrounding the diversification into the waste management and waste-to-energy business

The cash pile dropped further from $82m to $76m over the last quarter.

Using very rough back-of-the-envelop calculations, I estimate that the EPS for FY2018 will come in at around 2 cents. At the current share price of $0.30, that represents a PE of 15, which is hard to justify for a company operating in a highly competitive field, with lumpy earnings and compressed margins.

The share price could trend lower still..