TTJ Holdings

HOPEFUL

Incorporated in Aug-1992, the company was listed in SGX on Jan-2010. Core business of TTJ is in the design, supply, fabrication and erection of structural steelworks for buildings and infrastructure. The firm has a S1-grade license by Building and Construction Authority of Singapore. Her two factories are located in Singapore and Malaysia with a total capacity of 42,000 tonnes. 

In 2018, the group expanded into waste management in Singapore and Thailand. The business involves converting waste wood into wood pellets as feedstock to power bio-mass plants. 

Financial

Revenue and profit peak in FYJul16 and trended lower thereafter. This was mainly because of the expiry of highly profitable dormitory business in Jan-2017. 

Segments

Post expiry of license of dormitory business, TTJ scale up her activities in Structural Steel, leading to sizeable improvement in order-book from 3QApr17. 

On 29Apr20, the company announced improvement in order-book to $191M with $52M new projects. 

Waste Management is expected to begin scaling up in 2020 as bio-mass plants in Japan and Korea goes operational. As of FYJul19, revenue was only $0.7M with a start-up loss of $2.3M. 

Balance Sheet

TTJ NTA had been increasing since FYJul07 from $0.05 to $0.40 in the last financial year. P/NTA is 0.28 based on last price of $0.114.

As of 1QOct19, the company had a cash of $37M and total debt of $9M. 

Opinion

The strong Structural Steel order-book should sustain construction activities until FY22. 

Despite the impact of Covid-19, Waste Management business should gradually scale up in the course of 2020. Government is likely to boost infrastructure programmes to support their economies and domestic consumption. 

Notes

May20 announcement: Winding up of Technics Steel could push TTJ to net loss for FYJul20.

Sep20. Significant assumptions changes:

Thailand wood pellet operation suspended and Singapore wood pellet plant construction deferred - until global economy recovers.

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