Strong Project Pipeline and Commanding Order Book

The Group’s financial position as at 31 March 2011 remains healthy, with a strong cash and cash equivalents of approximately S$70.6 million.

The Group’s pipeline of projects continues to be very strong, and as at 31 March 2011, its order book for construction and civil engineering projects based on secured contracts stands at approximately S$1.1 billion+, one of the highest among its listed peers.The Group expects majority of these orders to be fulfilled over the next 12 to 30 months. Tiong Seng replenished its orderbook by securing two contracts. The first, worth $192m, was awarded by the Housing and Development Board (HDB) to build the first waterfront public housing project in Punggol, called Punggol Waterway Terraces. The contract reaffirms our belief that Tiong Seng’s A1 grading from the Building and Construction Authority (BCA) enables it to tap on opportunities in the HDB segment, where 22,000 new flats are expected this year. The second contract, valued at $104m, was awarded by City Developments for the construction of Glyndebourne, a freehold, high‐ end condominium development at Dunearn Road.

The Group is also looking forward to the completion of its Prefabrication Hub in 3Q2011 which will revolutionise the automated production of pre-cast building components, thereby enhancing productivity at all levels. Its acquisition of a majority stake in Switzerland-based Cobiax Technologies AG also gives it a strong edge in driving efficiency and productivity by cutting the volume of concrete used in reinforcement concrete slab by as much as 30%. The group’s investment in its pre-cast factory and Cobiax will enable the group to enhance cost efficiencies and thus stay ahead of competition in the years ahead.

Singapore’s construction sector outlook continues to be promising and demand is projected to reach between $22 billion and $28 billion in 2011.

 

Strong Project Pipeline and Commanding Order Book

The Group’s financial position as at 31 March 2011 remains healthy, with a strong cash and cash equivalents of approximately S$70.6 million.

The Group’s pipeline of projects continues to be very strong, and as at 31 March 2011, its order book for construction and civil engineering projects based on secured contracts stands at approximately S$1.1 billion+, one of the highest among its listed peers.The Group expects majority of these orders to be fulfilled over the next 12 to 30 months. Tiong Seng replenished its orderbook by securing two contracts. The first, worth $192m, was awarded by the Housing and Development Board (HDB) to build the first waterfront public housing project in Punggol, called Punggol Waterway Terraces. The contract reaffirms our belief that Tiong Seng’s A1 grading from the Building and Construction Authority (BCA) enables it to tap on opportunities in the HDB segment, where 22,000 new flats are expected this year. The second contract, valued at $104m, was awarded by City Developments for the construction of Glyndebourne, a freehold, high‐ end condominium development at Dunearn Road.

The Group is also looking forward to the completion of its Prefabrication Hub in 3Q2011 which will revolutionise the automated production of pre-cast building components, thereby enhancing productivity at all levels. Its acquisition of a majority stake in Switzerland-based Cobiax Technologies AG also gives it a strong edge in driving efficiency and productivity by cutting the volume of concrete used in reinforcement concrete slab by as much as 30%. The group’s investment in its pre-cast factory and Cobiax will enable the group to enhance cost efficiencies and thus stay ahead of competition in the years ahead.

Singapore’s construction sector outlook continues to be promising and demand is projected to reach between $22 billion and $28 billion in 2011.