Excerpts from CGS-CIMB report

Analyst: William Tng, CFA

Heavy lifting specialist
■ Listed in 1999, Tiong Woon Corporation (TWC SP, Not Rated) is a one-stop integrated heavy lift specialist and service provider.
■ The group returned to profitability in 2Q18.
■ Currently trades at a historical FY19 P/BV of 0.50x.


Listed since 1999
tiongwoon 6.14In the past three quarters, net profit rose from S$1.0m in 3Q19 to S$5.0m in 1Q20.
 Photo: Company
Listed in 1999, TWC is a one-stop integrated heavy lift specialist and service provider, 
supporting mainly the oil and gas, petrochemical, infrastructure and construction sectors.

The group manages turnkey projects for engineering, procurement and construction contractors and project owners, from the planning and design of heavy lifting and haulage requirements to the execution stage, in which heavy equipment is transported, lifted and installed at customers’ facilities.

Strong regional presence
Headquartered in Singapore, TWC has a presence in Singapore, Malaysia, Brunei, India, Bangladesh, Indonesia, Philippines, China, Thailand, Vietnam, Saudi Arabia, Myanmar and Sri Lanka.

Based on its 2018 Annual Report, TWC has been appointed as the sole 
distributor of IHI crawler cranes in ASEAN (Association of Southeast Asian Nation) except Indonesia, and is the authorised dealer of all XCMG (Xuzhou Construction Machinery Group, 000425 CH, Not Rated) products in Southeast Asia and exclusive distributor for Zoomlion (1157 HK, Not Rated) tower cranes in Singapore.

Back to profitability
williamtng4.14William Tng, CFA.TWC returned to the black at the net profit level in 2Q18 after three consecutive quarters of losses.

In the past three quarters, net profit rose from S$1.0m in 3Q19 to S$5.0m in 
1Q20.

According to management, the recovery was driven by more projects executed in 
Singapore as well as more chartering jobs.

Management guided that competition 
remained keen but major infrastructure projects and the pipeline of building projects in Singapore will bring more business opportunities.


Historical valuations
TWC trades at a historical FY19 P/BV of 0.50x. As at end Sep 2019, Tiong Woon’s book value per share was S$1.11.

Property, plant and equipment as at end Sep 2019 
accounted for 79.1% of its total assets.


Full report here