It is among the top 20 heavy-lifting crane operators in the world, and it has equipment used on projects ranging from waste recycling to marine transportation.
However, Tiong Woon Corporation (TWC), a Singapore-listed company that offers comprehensive project management services for heavy lift and haulage, isn’t receiving much notice in the stock market.
As of December 31, the group’s net assets were $320.5 million, or $1.30 per share, in net asset value. However, the stock of the corporation is only selling for around half of this amount.
Because it can deploy cranes and offer solutions to consumers at a far more reasonable cost than its international colleagues, the company has begun collaborating with some of its European competitors in certain locations.
Currently, the company’s gross profit margin is at roughly 44%, but analysts predict that this will rise. According to current market estimates, TWC’s earnings for the year ending in June 2024 will increase by 20% to around $21 million.
Despite the fact that no interim dividends were announced in February, stock analysts forecast a higher payout in 2024 because it will be the company’s 25th anniversary of listing.
According to Mr. John Cheong of UOB Kay Hian, “dividends have doubled to one cent per share last year, but management has hinted that shareholders should not be disappointed with TWC’s strong balance sheet at less than 10% net gearing and this being the 25th anniversary.” “The dividend trajectory ought to keep pointing in the right direction.”
Though the market hasn’t yet recognised TWC’s value, the company’s operating statistics and prospects are appealing.
The stock is currently trading at a price-to-book ratio of just 0.4 times and a future price-to-earnings multiple of 6.2 times for FY2024. Mr. Yon of Lim & Tan has set a price goal of 88 cents on TWC, while Mr. Cheong of UOB Kay Hian has set a target of 90 cents. This is based on a minimum 75% 12-month upside.