The Edge (19 Aug 2013) reported the causes of losses incurred in Darwin and Batam, as disclosed by Roland Ng, Tat Hong CEO.
Darwin
"The Darwin project was delayed.. for two months.......The result was that Tat Hong had been hit by the cost of relocating the cranes, which were then not fully employed."
Batam
"PT Worldwide suffered losses owing to cost overrun by a project that has since been completed."
He attributed the cost overrun to insufficient cost control.
In an obvious reference to Ng's earlier optimissim, The Edge said, "Had the taciturn Ng done a better job of informing the market of problems as Tat Hong encountered them, he might now be having an easier time convincing investors hat the stock is still a good buy."
Ya, the management has since taken steps to remedy the problems including restricting of Singapore operations, hopefully everything returns to normal , so does the share price.
Tat Hong has flown away from me.... Just sharing Maybank report issued today.
Downturn to persist, too early to buy. We met with management to assess the outlook on the company’s respective markets. Tat Hong’s core market, Australia, is expected to remain weak on the back of a change in the country’s political leadership, while earnings from China are supported by reasonable growth from nuclear plant construction works. Historically, share price is
dependent on Australia activities; therefore, until we see concrete beginnings on Australia’s infrastructure projects, we deem it too early to turn positive on Tat
Hong just yet. We raise our TP to SGD1, pegged to 12.3x FY6/14F PER, in line with its 5-year mean and adjust our earnings forecasts by 2%. Upgrade to HOLD.
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