TIONG WOON CORPORATION HOLDING LTD 
By
TIONG WOON CORPORATION HOLDING LTD
(Company Registration No. 199705837C)
MEDIA RELEASE For Immediate Release Tiong Woon posts 46% increase in net profit of S$13.4m on S$89.0m turnover for first half ended 31 December 2013(S$'m) | 1H2014 | 1H2013 | / |
Turnover | 89.0 | 98.9 | 10% |
Gross Profit | 32.1 | 28.0 | 15% |
Gross Profit Margin | 36% | 28% | •8ppts |
Profit Before Tax (PBT) | 13.5 | 12.7 | 6% |
Net Profit after tax attributable to equity holders | 13.4 | 9.1 | 46% |
Earnings Per Share (cents) | 2.88 | 1.97 | •46% |
31 Dec 2013 | 30 Jun 2013 | ||
Net Asset Value Per Share (cents) | 54.19 | 51.22 | 6% |
(長運集团) (Tiong Woon or the Group) reported a net profit attributable to equity holders of S$13.4 million on S$89.0 million of turnover for the six months ended 31 December 2013 (1H2014). This is a 46% increase from S$9.1 million. The 10% decrease in turnover in 1H2014 was mainly due to lower contributions from Engineering Services and Trading divisions.
Despite a lower turnover, gross profit for 1H2014 increased by 15% from S$28.0 million to S$32.1million. Gross profit margin for 1H2014 was stronger at 36% compared to 28% in the same corresponding period. The stronger gross profit margin was due to a 20% decrease in cost of sales achieved by the Group.
Page 1 of 4
Commenting on the results, Mr. Ang Kah Hong, Tiong Woon's Group Chairman and Managing Director (洪加豐) said: "We have maintained a steady momentum over the past quarters and achieved continued improvement in margins. In the light of the challenging business environment, we will remain vigilant in growing our core businesses and strive for greater improvements in operational efficiency, cost control and financial management.Tiong Woon will continue to maintain its competitive edge by focussing on staff training and labour productivity improvement measures."
Segment Highlights Turnover (S$'m) Profit Before Tax Margin (%) Continuing Operations 1H2014 1H2013 / 1H2014 1H2013 / Heavy Lift and Haulage 75.2 74.5 1% 16% 16% -Marine Transportation 6.2 5.4 15% 28% 31% 3ppts Engineering Services 3.7 10.9 66% (7)% (19)% 12ppts Trading 3.9 8.1 52% 2% 10% 8ppts
Total 89.0 98.9 10% 15% 13% 2ppts
Turnover for the core Heavy Lift and Haulage division rose 1% to S$75.2 million, contributing to
84% of Group revenue and 88% of Group profit before tax (PBT). Overall, PBT margins for Heavy Lift and Haulage division are firm reflecting the Group's involvement in more integrated heavy lift and haulage projects that involve integration with engineering services, marine transportation, and project management.
Turnover for Marine Transportation division increased by 15% from S$5.4 million to S$6.2 million due to more heavy lift and haulage projects which required integration with Marine Transportation.
The Engineering Services division's turnover saw a decrease of 66% to S$3.7 million due to completion of the Tuaspring project and a lower percentage of completion of the Tuas New Yard Phase 1 project.
The Trading division which handles supply and distribution of machinery, equipment and spare parts, registered a 52% decrease in turnover to S$3.9 million on the back of less equipment sales.
Page 2 of 4
Financial Position and Fleet Size
As at 31 December 2013, net assets was S$251.7 million, translating to a net asset value per share of 54.19 Singapore cents. Property, Plant and Equipment was S$316.0 million as compared to S$307.4 million as of 30 June 2013 reflecting the Group's ongoing investment in higher specification and specialised machinery.
Tiong Woon has a fleet of 431 cranes in lifting assets, 270 vehicles and equipment in haulage assets and 20 tugs and barges in marine assets as at 31 December 2013.
Tiong Woon has a market capitalisation of S$153.3 million, based on 11 February 2014 closing price of 33.0 Singapore cents per share. The total number of shares issued as of this date is 464.5 million.
The demand for heavy lift and haulage from the oil and gas, and petrochemical industries is expected to be resilient in the region. In Singapore, the Group's heavy lift and haulage businesses will be supported by the strong pipeline of public and private sector housing, petrochemicals and infrastructure projects. In other ASEAN countries and the Middle East, the Group will also focus on oil & gas and petrochemical, infrastructure development and construction opportunities. The Group will forge strategic alliances and cooperation with international contractors and industry players to jointly participate in the bidding for projects.
While there are ample business opportunities, it is anticipated that labour and other operating costs continue to be on the rise. To improve productivity and operational efficiency, the Group will continue to upgrade the skills of its workforce. The Group will stay competitive by making continued improvements in operational efficiency, cost control and prudent financial management. It will continue to invest in higher capacity and specialised equipment, so as to widen the range of service
offerings to its clients and stay ahead of competition.
Page 3 of 4
The Group will continue to leverage on its competitive strength as a one-stop integrated services provider in project management for heavy lift and haulage, marine transportation and engineering services.
In anticipation of the increased operational needs of the Group's future expansion, the Group will invest and redevelop it's headquarter premises at 15 Pandan Crescent in Singapore.
This press release should be read in conjunction with the full SGX announcement released by Tiong
Woon dated 12 February 2014. A copy of the announcement is available on www.sgx.com.
- End -
About Tiong Woon Corporation Holding Ltd (www.tiongwoon.com)
Listed in 1999, Tiong Woon Corporation Holding Ltd (Tiong Woon) is a leading one stop integrated services specialist and provider, supporting mainly the oil & gas, petrochemical, infrastructure and construction sectors.
The Group manages turnkey projects for engineering, procurement and construction (EPC) contractors and project owners from planning and design of heavy lifting and haulage requirements to the execution stage in which the heavy equipments are transported, lifted and installed at customers' facilities. Tiong Woon also possesses its own heavy lift and haulage equipments, tugboats and barges which enable the Group to widen its integrated services offering to its clients.
Headquartered in Singapore, Tiong Woon has establishments in Malaysia, Indonesia, Thailand, Philippines, Vietnam, China, Myanmar, India and Saudi Arabia. It is ranked as the 15th largest crane owning company worldwide by International Cranes and Specialized Transport, a reputable trade magazine, in its IC50 2013 survey. In addition, it is one of the top 10 companies in the world in terms of crawler crane ownership. It also owns Terex Demag CC 8800-1 cranes which are recognized as one of the largest cranes with the capacity of
1,600-tonne lift and above.
Tiong Woon is committed to providing high quality and safe services, on time and on budget to its clients anywhere in the world.
Issued on behalf of Tiong Woon Corporation Holding Ltd by Waterbrooks Consultants Pte Ltd
------------------------------------------------------------------------------------------------------------
Media and Analyst Contacts: Waterbrooks Consultants Pte LtdTel: (+65) 6100-2228
Email: info_news@waterbrooks.com.sg
Mr Wayne Koo Mr Ng Tian Khean
Mobile: (+65) 9338 8166 Mobile: (+65) 9640 2808
Email: wayne.koo@waterbrooks.com.sg Email: tk@waterbrooks.com.sg
Page 4 of 4
|
distributed by
|
