Tat Hong Holdings Limited

[Musicwhiz]

Tat Hong have released their latest 1Q 2012 results. Attached please find OCBC's report on it.

(Not Vested)

[ValueBeliever]

Looks to me the flood + gorgon going full swing going to result in massive increase in revenue for Tat this year...China a will be a drag??

Any 1 wanting to start crane business is no longer easy access to capital and oil/gas job require lots of track record and documented safety performance... Not so strait forward.

But the stock is no longer liquid trade...for a very simple reason... it has hit bottom and the rebound when it come can be fast and furious!!

[RBM]

Valuebeliever,

Thanks for your posting. I have been watching Tat Hong for some time.

You say TH has hit "bottom", but - if I'm not incorrect - this counter's share price has risen by > 40% on the SGX in the last six months........... to the extent that its now trading on a > 14% P/E. I am wondering if its now a tad too expensive and as you say illiquidity doesn't help.

Just my two cents worth,
Not vested,
RBM

[ValueBeliever]

Valuebeliever,

Thanks for your posting. I have been watching Tat Hong for some time.

You say TH has hit "bottom", but - if I'm not incorrect - this counter's share price has risen by > 40% on the SGX in the last six months........... to the extent that its now trading on a > 14% P/E. I am wondering if its now a tad too expensive and as you say illiquidity doesn't help.

Just my two cents worth,
Not vested,
RBM

The Directors have made smart move... I give credit to Roland, he made all the move to equity in Tut, YangMao (put himself personally in charge of all the China ops. - got guts), buy up local competition, at a time when everything looks very uncertain, it still is but the deals will be coming in sooner than most realise. The flood in Sydney same as what caused Brisbane - last year tat revenue jump and profit follow after Brisbane, expect Sydney flood to result in increase revenue also. Gorgon is going full swing - see Ezion is running ahead.... Without Tutt Bryant crane how can they build such a huge complex.

Buy and lock it up...very slow counter but the reward is coming....By the way unlike most Co. Tat doesnt issue extra equity to dilute only the 50mil warrant outstanding. We could be in for higher EPS..if China boost infrastructure spending....
buy up com

[camelking]

Valuebeliever,

Thanks for your posting. I have been watching Tat Hong for some time.

You say TH has hit "bottom", but - if I'm not incorrect - this counter's share price has risen by > 40% on the SGX in the last six months........... to the extent that its now trading on a > 14% P/E. I am wondering if its now a tad too expensive and as you say illiquidity doesn't help.

Just my two cents worth,
Not vested,
RBM

The Directors have made smart move... I give credit to Roland, he made all the move to equity in Tut, YangMao (put himself personally in charge of all the China ops. - got guts), buy up local competition, at a time when everything looks very uncertain, it still is but the deals will be coming in sooner than most realise. The flood in Sydney same as what caused Brisbane - last year tat revenue jump and profit follow after Brisbane, expect Sydney flood to result in increase revenue also. Gorgon is going full swing - see Ezion is running ahead.... Without Tutt Bryant crane how can they build such a huge complex.

Buy and lock it up...very slow counter but the reward is coming....By the way unlike most Co. Tat doesnt issue extra equity to dilute only the 50mil warrant outstanding. We could be in for higher EPS..if China boost infrastructure spending....
buy up com

Yes, Australia will do well.

However, two issues

1. The preference shares which need to be redeem at 1.08 in 2 yrs time.
Else, the dividend will be 30% per annum.
So, where does the money from ?
Either right issue or placement shares...Unless they sell Tutts, further dilution.

Another time bomb is china. So much debts and so much issues (Just look at the legal cases) with so little profit. Graveyard for tathong?
When China was growing at 9,10 %, so little profit
Now at 7.5%, how?

A crane is a crane, putting the green logo on the tip of the crane doesn't give you extra rental.
It is highly competitive....just look at tiong woon, Seng Heng and Hiap Tiong..

[RBM]

I am with you on this one camelking.

I believe Tat Hong was approaching being attractively priced last October, when it was trading in the S$ 0.645 - S$ 0.650 range ........... but at S$ 0.90'ish, with a P/E approaching 15, a dividend yield of ~ 1.7% and the downsides camelking crisply refers to in his posting of earlier today, I wonder if Tat Hong's share price now has more downside rather than upside. Gorgon is indeed a massive project and it will be very expensive to demobilise Tat Hong's kit from Barrow Island........but they face fierce competition to win further work from the Chevron-Shell-Exxon consortium - there are a multitude of qualified bidders who covet this work.

Not Vested

[camelking]

I am with you on this one camelking.

I believe Tat Hong was approaching being attractively priced last October, when it was trading in the S$ 0.645 - S$ 0.650 range ........... but at S$ 0.90'ish, with a P/E approaching 15, a dividend yield of ~ 1.7% and the downsides camelking crisply refers to in his posting of earlier today, I wonder if Tat Hong's share price now has more downside rather than upside. Gorgon is indeed a massive project and it will be very expensive to demobilise Tat Hong's kit from Barrow Island........but they face fierce competition to win further work from the Chevron-Shell-Exxon consortium - there are a multitude of qualified bidders who covet this work.

Not Vested

Tathong had a window opportunity in 2007/2008 to consolidate their already dominant position in Asean. They were making 100m and more in those years. However, a decision was made to go into China.

There goes the profit made from Asean and Australia.

On HINDSIGHT, the money could be used to wipe out competition in Asean. In 2009/2010, riding up years of good results, their competitors went for IPO and with it, bigger warchest to take on tathong.

The rise of price from 0.645 to 0.90 can be attributed to below reasons
1. Massive insider purchase
2. Better market conditions
3. Better than normal results in 3Q FY12.

Not vested too.

[portuser]

Mr Ng Chwee Cheng (related to Mr Roland Ng) reduced his stake from 12.54 % To 10.43 % on 6 Mar 2012.

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Mr Ng Chwee Cheng (related to Mr Roland Ng) reduced his stake from 12.54 % To 10.43 % on 6 Mar 2012.

[camelking]

Mr Ng Chwee Cheng (related to Mr Roland Ng) reduced his stake from 12.54 % To 10.43 % on 6 Mar 2012.

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Mr Ng Chwee Cheng (related to Mr Roland Ng) reduced his stake from 12.54 % To 10.43 % on 6 Mar 2012.

He is Roland's father.

[portuser]

The father's action was at odds with the children's?

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The father's action was at odds with the children's?