T T J Holdings | Dividend Yield 4.1%
T T J Holdings is a construction player with fat margins.
As at 30 April, net margin posted by the leading provider of structural steel works was 14% for 9MFY2015, much higher than other steel players such as BRC Asia (1H2015: 5%) and Lee Metal (1QFY2015 3%).
The Group’s margins were boosted by its operation of one single dormitory in Singapore (Terusan Lodge 1) with capacity for 5,300 work permit holders.
Its dormitory business contributed 13.4% to FY2014 Group revenue, mitigating the impact of lower volumes of structural steel work.
T T J’s Chairman and Managing Director, Mr Teo Hock Chwee. Photo: Company
Founder and major shareholder Teo Hock Chwee recently placed his vote of confidence in the stock even though there is currently a slump in the local construction sector.
He acquired 400,000 T T J Holdings shares on 28 April at 34 cents apiece from the open market, increasing his total interest to 67.2%.
His vote of confidence appeared to have positive impact its stock price.
The stock price rose by 5.9% to reach a recent high of 36 cents on 18 June after the Group posted 9MFY2015 net profit was down 40% year-on-year at S$9.6 million.
As at 8 June 2015, T T J’s projects order book stood at S$106 million, which it expects to substantially complete between FY2015 and FY2017.
The orderbook includes orders worth S$35 million secured in May for the provision of structural steel works for projects on Jurong Island and civil defence doors for Thomson Line.
