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.


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