Vietnam and India.



 

 

 

 

 

  To reduce operating costs, TWC is currently evaluating the tenders



 

 

for the re-development of the new office and warehouse space at 15

Pandan Cresent. This property will add 1ha of parking space on the

rooftop as well as a 500-bedded workers? dormitory. The company

expects to lower their total manpower costs and there is also a

possibility of renting out half of their dorms.



 

? TWC has sold its loss-making subsidiary Tiong Woon Oil & Gas

 

 

Services Pte Ltd for a sum of S$18.0m. The subsidiary is in the

business of marine fabrication and engineering works for oil and gas

projects but has faced several challenges in getting new contracts due

to a lack of track record. With the disposal, the company is likely to

record a gain on disposal of approximately S$2.7m in the next quarter.



 

? We re-iterate that Tiong Woon is not a pure crane rental operator.



 

 

Tiong Woon differentiates itself from other crane operators by providing

a comprehensive project management service apart from bare crane

rental. These service project contracts are longer term in nature (rates

are locked in) and therefore, earnings are theoretically less volatile in

nature.



 

Price Chart



 

 

Source: Bloomberg



 

 

Tiong Woon?s net profit rose 11% to S$4.6m on