Prior to his retirement, Chan Kit Whye worked more than 30 years as Regional Finance Director, Financial Controller and Manager in a multinational specialty chemical business. He has played an active role in CPA (Australia) Singapore Branch, taking up positions in its Continuing Professional Development and Social Committees. Kit Whye is a Fellow of CPA Australia, CA of Institute of Singapore Chartered Accountants and CA of the Malaysian Institute of Accountants. He holds a BBus(Transport) Degree from RMIT, MAcc Degree from Charles Sturt University and MBA from Durham Business School.
Tat Hong has a market cap of S$471 m. Out of its 4 business segments, the tower crane rental division is the brightest spot as it rides on the urbanisation trend in China. Chart: FT.comTAT HONG: Shares have taken a beating -- they are down from around $1.55 from last year March to $0.77 currently.
The selldown is the result of its 9-month performance, which has been way below expectation.
Year-to-date nine months profit attributable to shareholders is only 40.7% of its last year full year's profits, which has made it very difficult for Tat Hong to do a catch-up.
Dividends may be cut, as its projected earnings per share for its full financial year ending March 2014 will come in at 6-7 cents, as compared to the previous year's 11.57 cents.
Dividend may be cut from 4 cents to 3.5 cents a share.
Although its prospective PE is 13x, its price-to-book ratio is 0.74 times, or its current share price is close to 30% discount to its NAV.
No wonder Executive Director Michael Ng recently bought 203,000 shares from the open market at $0.755 and raised his stake to 0.21%.
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