Tat Hong Holdings

Established History
Tat Hong has history from the 70s, set up in Singapore as a supplier of cranes and heavy equipment.

Market Dominance
Today, it has become the largest crawler crane company in the world, with operations in Malaysia, Thailand, Indonesia, Hong Kong, China, Vietnam, Dubai and Australia.

Growth and Future Plans
Recently, it has set up two Joint Venture companies:

1. Tat Hong has on 28 August 2013 entered into a joint venture agreement with Intraco and Mr Aung Moe Kyaw, and that the parties have incorporated a joint venture company, Tat Hong Intraco Pte Ltd, in Singapore. The company will carry out the business of distribution of cranes and excavators in Myanmar.

2. Announced on 26 October 2013, Tat Hong Holdings, Boustead Singapore and CSC Holdings (three local firms) have set up a joint venture with AME Group (Johor based) to develop land in Iskandar Malaysia. The joint venture will jointly undertake mixed property development in Iskandar Malaysia.

Financial Ratios

Some financial ratios:

P/E ratio: 8.5

P/B ratio: 0.9

Dividend payout since 2006. Past year yield: 4.2%

Valuations seem reasonable now since price drop from 1Q performance disappointment. Factoring in potential growth from Myanmar and Iskandar, I have taken up a position with this company.

Disclaimer: The ideas expressed in this blog should not be construed as an enticement 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.