Draft: 2/20/2017, price $0.38, S$135m.
Data source: Prospectus 2010, Listed Apr 2010, Issue price 0.20/share.
Updated 2/25/2017,
Data source: 2016 AR
Company profile(2010):
- Structural steel specialist strong in SG and Middle East. Production capacity of 42k tonnes/pa.
- Dormitory biz hosting 5700 people.
Chairman & CEO: Mr. Teo Hock Chwee, founded company in 1981<TTJDE>. Age 60(2016).
91% business from SG in 2009. 67% staff are foreign workers(236 work permit holders in two dormitories).
Risk factors:
Business nature: on a project basis and non-recurring, it is critical to continuously secure new projects.
Steel price fluctuation US$582~1160 per tonne in 2006-2010. (US$681, Feb 2017)
<Pg 69 B/S>
When it was first listed, gearing ratio is high, current ratio is low. Who would think of this underdog in an industry that sounds so dull?
But its shareholder is handsomely rewarded if so holds the IPO pieces till now. TTJ Holdings enjoyed the magic power of capital market to grow its revenue from 60+m revenue to 130+m.
Then:
Now:
With the today's price of 0.38 cents, without counting the dividends, it offered its shareholder an annualized return of 10~11% for the past 6.5~7 years since it went public (even though the price was offered at 1.5PB that time, only 1PB today),while STI index was 2900~3030 in Apr 2010 it is still around that range today.
Operation wise, it did much better than its competitor Yongnam Holdings(AXB). Yongnam holding has 300m+ revenue a year, with GM of sub-ten %.
It is a win-win for its founder/owner and its shareholders.
真的是丑小鸭变小天鹅。
History from 1970s, <Pg 84>
TTJ Civil Engineering closed shop in 2002 due to unable to meet its liabilities obligations, renamed to FRC Civil Engineering.
===============================
Prospects
Business mainly in Singapore, overseas venture(UAE) doesn't seem work well, with SG gov's continuous infrastructure investment, and company's S1 steel contractor grading, the market demand is promising.
<Permits> Pg 237
===============================
2016 Chairman msg:
careful selection of projects, sustain profit margin and bottom line growth. 姜是老的辣。
Public sector demand: S$16~20b/p.a.
Top 3 customers, 75m out of 137m,50+%
Administrative cost: 25.8m/500+employees(2010 data), 40~50k/pax, which means TTJ can hardly achieve cost adv. over local player in other market(this seems proven by little overseas success so far). It means the major revenue driver will still be construction in SG which company has established track records.
PPE: ~35-40m.
TTJ Green Energy incorporated.
===============================
Initialed a position. Vested, not because my investment, but TTJ built the sky bridges of the place that I'm currently staying.
Data source: Prospectus 2010, Listed Apr 2010, Issue price 0.20/share.
Updated 2/25/2017,
Data source: 2016 AR
Company profile(2010):
- Structural steel specialist strong in SG and Middle East. Production capacity of 42k tonnes/pa.
- Dormitory biz hosting 5700 people.
Chairman & CEO: Mr. Teo Hock Chwee, founded company in 1981<TTJDE>. Age 60(2016).
91% business from SG in 2009. 67% staff are foreign workers(236 work permit holders in two dormitories).
Risk factors:
Business nature: on a project basis and non-recurring, it is critical to continuously secure new projects.
Steel price fluctuation US$582~1160 per tonne in 2006-2010. (US$681, Feb 2017)
| Max Production capacity (tonnes) | Utilization | |
| 2007 | 19000 | 57% |
| 2008 | 24000 | 65.80% |
| 2009 | 35000 | 56.70% |
<Pg 69 B/S>
| $’000 Audited | 31-Jul-09 | ||
| Property, Plant and Equipment | 24,074 | ||
| Investment Property | 18,697 | ||
| Total Non-Current Assets | 42,771 | ||
| Inventories | 600 | ||
| Trade and Other Receivables | 49,419 | ||
| Other Assets | 475 | ||
| Cash and Cash Equivalents | 5,875 | ||
| Total Current Assets | 56,369 | ||
| Total Assets | 99,140 | ||
| Equity | |||
| Share Capital | 2,000 | ||
| Retained Earnings | 29,941 | ||
| Other Reserve | (318) | ||
| Minority Interest | 11 | ||
| Total Equity | 31,634 | 32% | |
| Deferred Tax Liabilities | 768 | ||
| Finance Leases | 1,549 | ||
| Other Financial Liabilities | 15,045 | ||
| Total Non-Current Liabilities | 17,362 | ||
| Income Tax Payable | 2,899 | ||
| Trade and Other Payables | 21,730 | ||
| Finance Leases | 802 | ||
| Other Financial Liabilities | 24,540 | ||
| Other Liabilities | 173 | ||
| Total Current Liabilities | 50,144 | ||
| Total Liabilities | 67,506 | 68% | |
| Total Equity and Liabilities | 99,140 | 100% |
When it was first listed, gearing ratio is high, current ratio is low. Who would think of this underdog in an industry that sounds so dull?
But its shareholder is handsomely rewarded if so holds the IPO pieces till now. TTJ Holdings enjoyed the magic power of capital market to grow its revenue from 60+m revenue to 130+m.
Then:
| 2007 | 2008 | 2009 | |||
| Revenue | 64.5 | 65.4 | 138 | ||
| Gross Profit | 15.4 | 14.8 | 23 | ||
| PBT | 10.6 | 8.4 | 15.8 | ||
| PATMI | 9.2 | 6.6 | 13 | ||
| Net CF from Operating | 3.9 | 4.4 | 13.5 | ||
| EPS(cents/ 350m shares) | 2.6 | 1.9 | 3.8 | ||
| NAV(cents) | 14.8 | ||||
| IPO 2010 | 0.2 | (cents) | |||
| 70 | (million) |
Now:
| in millions | 2007-07 | 2008-07 | 2009-07 | 2010-07 | 2011-07 | 2012-07 | 2013-07 | 2014-07 | 2015-07 | 2016-07 |
| Revenue | — | — | 138 | 70 | 97 | 143 | 127 | 135 | 94 | 137 |
| GP Margin | — | — | 17% | 26% | 29% | 21% | 22% | 28% | 29% | 29% |
| OP | — | — | 18 | 11 | 19 | 17 | 17 | 25 | 20 | 30 |
| OP Margin | — | — | 13% | 16% | 20% | 12% | 13% | 19% | 21% | 22% |
| Operating CF | — | — | 14 | 17 | 24 | 5 | 18 | 29 | 31 | 35 |
| Capex | — | — | -18 | -1 | -2 | -3 | -1 | -2 | -1 | -1 |
| FCF | — | — | -5 | 16 | 22 | 2 | 17 | 28 | 30 | 35 |
| NAV | — | — | — | 0.09 | 0.18 | 0.25 | 0.26 | 0.32 | 0.35 | 0.36 |
| EPS | — | — | 0.05 | 0.02 | 0.04 | — | 0.04 | 0.06 | 0.04 | 0.07 |
| Dividend | — | — | — | — | — | 0.01 | 0.01 | — | 0.01 | 0.08 |
| Payout Ratio % | — | — | — | — | 15.8 | — | — | 52.6 | 32 | 96.9 |
With the today's price of 0.38 cents, without counting the dividends, it offered its shareholder an annualized return of 10~11% for the past 6.5~7 years since it went public (even though the price was offered at 1.5PB that time, only 1PB today),while STI index was 2900~3030 in Apr 2010 it is still around that range today.
Operation wise, it did much better than its competitor Yongnam Holdings(AXB). Yongnam holding has 300m+ revenue a year, with GM of sub-ten %.
It is a win-win for its founder/owner and its shareholders.
真的是丑小鸭变小天鹅。
History from 1970s, <Pg 84>
TTJ Civil Engineering closed shop in 2002 due to unable to meet its liabilities obligations, renamed to FRC Civil Engineering.
===============================
Prospects
Business mainly in Singapore, overseas venture(UAE) doesn't seem work well, with SG gov's continuous infrastructure investment, and company's S1 steel contractor grading, the market demand is promising.
<Permits> Pg 237
===============================
2016 Chairman msg:
careful selection of projects, sustain profit margin and bottom line growth. 姜是老的辣。
Public sector demand: S$16~20b/p.a.
Top 3 customers, 75m out of 137m,50+%
Administrative cost: 25.8m/500+employees(2010 data), 40~50k/pax, which means TTJ can hardly achieve cost adv. over local player in other market(this seems proven by little overseas success so far). It means the major revenue driver will still be construction in SG which company has established track records.
PPE: ~35-40m.
TTJ Green Energy incorporated.
===============================
Initialed a position. Vested, not because my investment, but TTJ built the sky bridges of the place that I'm currently staying.
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