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Falling for the 5th day. Still red red while the others are enjoying a rebound. Support at $1.20 ???
Despite OCBC's downgrading to a HOLD, Tat Hong remains as the one of the top picks for 2013 in a strategy report by CIMB dated 26/6. It is still one of the 5 small/mid cap picks in DBS's Wired Daily. Both houses have a same target price of $1.80.
Tat Hong really boost my profit .............thnx
...it is good & importance to have independent view & make own decision in share investing and not sway by any one...
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.derekchong ( Date: 26-Jun-2013 16:47) Posted:
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when OCBC call hold or sell,
its the time to buy and accumulate.
Time to take profit
Since our last upgrade on Tat Hong (“Poised for Recovery”, 9/1/2012), the group’s crane fleet grew by ~20% (in tonnage), utilization rate by 5 ppt and rental rates by an estimated 10-15%, resulting in a 66% jump in FY13 PATMI. In our view, the easy money has already been made. Investors who have heeded our call would have made 45% return in 1.5 years and should now consider taking some profit.
Looking ahead, the macro environment looks increasingly uncertain with sluggish data points coming out of China. Tat Hong’s crane fleet expansion is also expected to slow after a 79% surge in crane tonnage over the past five years.
Finally, there is a possible share overhang resulting from private equity AIF Capital’s conversion of convertible preference shares to 53.3m ordinary shares. Downgrade to HOLD with lower FV estimate of S$1.31 (previously S$1.75). ...Last Done: $1.225...
Chia Jiunyang - OCBC
no ninty cts no buy.
down very fast today, durain picking season coming.
As at March 31,the company's NAV was $1.08 per share. Cash and cash equivalents held fell to $61mil. Net gearing fell to 0.71 times. It has proposed a fi nal dividend of 2.5 cents pershare.
Mainboard-listed crane company Tat Hong has posted a net profit of S$18.6 million for the fourth quarter that ended March 31, 66 per cent higher than the S$11.2 million a year ago.
That translates to an earnings per share (EPS) of 3.07 Singapore cents, compared with 1.96 Singapore cents from the same period in the previous year.
The higher profits came about broadly from higher revenue and lower expenses, as well as increases in other operating income (including interest income), and a swing to profit for its share of joint ventures from losses a year ago.
For the full year (FY13) that ended March 31, Tat Hong booked a net profit of S$70.4 million, 67 per cent higher than the S$42.3 million from the previous year.
... Married Deal: Vol: 750 Value: $1,115,250 ie $1.487 / share Prev Close: $1.480 ...
Tat Hong Holdings - Expecting A Strong Finish To The Year
Expect a strong finish to the year. Tat Hong will announce its 4QFY3/13 results on 28 May. We expect a strong finish to the year with 4Q revenue of SGD232m and net profit of SGD17m, up 27% and 50% yoy respectively. For 9MFY13, Tat Hong has met 73%/76% of our full-year revenue/net profit targets. We continue to see Tat Hong as the best proxy to ASEAN infrastructure and Australia oil& gas sector play. Reiterate BUY with target price SGD1.78.
Main growth drivers remain. Crane Rental and Tower Crane are expected to drive the growth forecast 41% and 22% FY3/13 revenue growth in those two sectors. For Crane Rental, we expect new contracts in the pipeline to drive utilization higher. We also think rental rates have some room to be raised further. Distribution and General Equipment Rental might be affected by the subdued demand in Australia out of the resources sector but they only account for 33% of gross profit.
Possible upside surprises to our FY14/15 forecasts. 1) Current utilization rate of 71% have ample headroom to improve vs peak utilization of 80%. 2) Our current low single digit rental rate increase in FY14/15 also has upside potential. 3) Further growth could come from the expansion of fleet size. Crane prices are still lagging behind the rental rate hike and the depreciating JPY will also benefit equipment buyers like Tat Hong.
Better cost control than peers. Rising labour cost and shortage of crane operators are two concerns for this industry. Tat Hong has some advantage on this front partly because its bigger size helps to drive down the average labour cost. For example, the labour cost to revenue ratio for Tat Hong was only 16% in FY12 compared with 20-25% for peers, which highlights Tat Hong’s ability to generate revenue in a more cost-efficient way.
More upside once short term share overhang removed. Tat Hong shares have been shorted heavily since last month after AIF converted 53m convertible preference shares into common shares. Investors worried that AIF will sell its shares in the market, which explains the weakness in share price recently. We think such potential selling will only have a short term impact on share price and in the long term, we view it positively as it will improve the liquidity of the stock. Maintain BUY.
Source: Maybank Kim Eng Research - 13 May 2013 ...last done: $1.46...
there are demand for cranes and Tat Hong the
leader in this industry can benefit , getting better
rental rate.
final result this month and px dropping.
may means it faced manpower issue
Crane operators wanted for BOT programme,
this counter still going down.
seems there is a divergence between the share price and the fundamental. is Mr Market telling us something? Distribution in process?
this wk. down very fast, $1.305 coming.
... Married Deal: Vol: 502 Value: $757,016 ie $1.508 / share Prev Close: $1.505 ...