TIONG WOON CORPORATION LIMITED

Tiong Woon is an integrated Oil & Gas services provider and engineering company for infrastructure businesses, specializing in heavy lift and haulage, marine transportation, fabrication and engineering, as well as heavy equipment trading. Tiong Woon's business model leverages on its extensive fleet of heavy lift, heavy haulage and marine equipment to consistently execute and deliver best-in-class services to its customers in the markets in which it operates. Ranked the 18th largest crane-owning company worldwide by International Cranes, a reputable trade magazine, in its IC50 2010 survey, the company is committed to providing top quality services and support to its customers anywhere in the world.

Tiong Woon Corporation Holding Ltd., an investment holding company, provides infrastructure services in the areas of heavy lift, heavy haulage, and marine transportation. The company primarily engages in selling and hiring cranes and transport equipment, as well as providing wharfing and stevedoring services; mechanical and infrastructure engineering services and structural works; and fabrication and engineering works for the marine and oil and gas industries. It supplies and rents its fleet of hydraulic cranes, crawler cranes, rough terrain cranes, lorry cranes, and tower cranes; provides logistics planning and management services; and owns and leases heavy haulage equipment, such as prime movers, lowbeds, self-propelled modular trailers, trailers, and tow trucks for the transportation of heavy process equipment, which include modules and structures.

The company also offers marine transportation services through fleet of tugboats and barges; and involves in the project management of integrated engineering works for heavy lifting, heavy haulage, marine transportation, and mechanical equipment installation. In addition, it provides oil and gas offshore platform construction, marine vessel fabrication and repair, offshore drilling rig construction and repair services, and heavy steel module fabrication services; and trades in heavy lift equipment and spare parts, as well as offers after sales services. It primarily serves oil and gas, petrochemical, power, and construction sectors in Singapore, China, Indonesia, Thailand, Malaysia, and the Middle East, as well as in Brunei, India, and Vietnam. The company was founded in 1978 and is headquartered in Singapore.

FINANCIAL HIGHLIGHTS

SELL!

During august 2010, price is just at $0.40, it has drop more than 61.8% retracement ($0.46). Before this, Tiong Woon has been in the low price during March 2009 at $0.155 and at the highest during September 2009 at $0.99. Since then, stock price has been in downtrend until now August 2010. In May 2010, it has reach the low point at $0.385, this price is in between 61.8% retracement level to 78.6% retracement level, $0.32. Currently the stock price is at $0.40, maybe soon will be going back to the low point at the price of $0.385. If you read the following articles from the different sources, they have said coming quarters will not be positive for this company as capital-intensive projects may be put on hold by companies given increasing risk of weaker global economic growth. So. It has the high possibility for the stock to drop and touch the 78.6% retracement level at $0.32 OR even more than this level ?

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Tiong Woon’s FY10 Earnings Plunge 43%

Tiong Woon Corp Holdings (Tiong Woon) recorded a full-year net profit of $23.9m – a 43% dive from the $42.3m made a year ago. The drop in net profit was partly due to losses in marine transport, resulting from a lower gain on disposal of tugs and barges and low fleet utilisation. Its heavy lift and haulage segment saw profit fall slightly more than half from the previous FY, due to lesser integrated projects undertaken in the Asia-Pacific region and a drop in the utilisation and rental rate for its lower tonnage-capacity cranes. Revenue also sank 27% from $148.4m in FY09 to $202.3m in FY10. Tiong Woon reported $38.3m in cash and cash equivalents at the end of the financial year. The company has announced a final dividend of $0.004 per share, payable in November.

Significance: Despite a weaker performance, Tiong Woon’s efforts to strengthen and enhance its capabilities through upgrading of fleet and employee training programmes, will probably pay off when the global economy recovers.

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TIONG WOON TARGET CUT TO $0.45 BY CREDIT SUISSE
Thursday, August 26, 2010, 4:35
Credit Suisse cuts Tiong Woon (T06.SG) direct toll to $0.45 from $0.80 after cloudy business FY11-12 earnings estimates by 31.5%-29.9% to emit modify edge assumptions, says Dow Jones.
“Near term, we wait the structural overcapacity in modify tariff power cranes in island to damp margins for the onerous displace and haulage segment, modify as Tiong Woon targets boost foreign ontogeny drivers,” says Credit Suisse, ownership its Neutral call.

Research concern says saliency for crane consort relic anaemic but notes earnings fall has probable bottomed out. Net acquire for FY10 ended June downbound 43% at $23.9 meg on modify revenue. Shares insipid at $0.40.

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Tiong Woon (T06.SG) recoups losses, last flat at $0.40 vs $0.395 earlier, suggesting crane company’s dismal June-quarter results, prospect of continued earnings pressure largely priced in given stock’s 33% fall since April peak of $0.595, according to Dow Jones.

But interest expected to remain subdued in near term as no catalyst in sight, with demand for Tiong Woon’s cranes in Singapore, its main market, likely to stay soft given completion of 2 casino resorts.

Attempts to secure more business from abroad also yet to pay off as capital-intensive projects may be put on hold by companies given increasing risk of weaker global economic growth.

Orderbook quotes tip $0.395-$0.41 trading band for time being. Fiscal 4Q10 net profit at $2.8 million vs $12.2 million year earlier. FY10 performance just as dismal, with earnings down 43% at $23.9 million on lower revenue, margins.