Wednesday, April 2, 2014

Tat Hong, buying below its NAV

Tat Hong listed at SGX on 1 June 2000

FY                   EPS           Rev (mil)         Net Inc (mil)      Net % Margin
2014 (TTM)    4.46c
2013               11.62c         836.9              70.4                  8.4%
2012                7.42c          719.8              42.3                  5.8%
2011                4.56c          548.2              26                     4.7%
2010                7.20c          495.4              38.6                  7.7%
2009              13.62c        631.8              68.9                  10.9%

Ave         8.88c                                                          7.5%

Debt
  • Current: 202.951 mil
  • L.T : 277.869 mil
Cash-on-hand: 70.871 mil
Total Debt: 480.82 mil
NAV: $ 1.04
Shares: 629,823,823
Convertible preference shares: 11,700,000

Data as correct based on 21 Mar 2014 Business Times
Div yield (gross) : 3.4%
Div paying period => Aug , Nov
P/E -> 6.4


Opinion

At its current price, Tat Hong looks attractive. Given the slow down in construction and commodities industries due to it cyclical nature, Tat Hong has taken a revenue cut back.  But this has given rise to an opportunity to get this stock at a cheap price. Looking at its NAV, Tat Hong is now trading at 27% below its NAV.

Will it go lower? Probably yes. In yr 2011, its lowest trading price is 69c. My view on this stock is to accumulate for the long term.


DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.