ANALYSTS SAY: Buy, Sell, Hold (13 Jan)

Tiong Woon Corporation/TWC ($0.475, unchanged) announced that it’s wholly-owned subsidiary, Tiong Woon Tower Crane, had been granted by National Robex Pte. Ltd. an option to acquire an industrial premise situated at 12 Benoi Place, Singapore 629932 from the Vendor for an aggregate cash consideration of S$8,400,000. The Option was granted on payment of S$84,000 (1% of the Consideration). TWTC is required to make a further payment of S$756,000 (9% of the ConsideraƟ on) by 26 January 2022 to exercise the Option.

TWC’s market cap stands at S$110.3mln and currently trades at 7.7x forward PE and 0.4x PB. We believe this is an opportunistic acquisition from Tiong Woon as it gears up for the upcoming construction recovery
and we are certain that TWC will be a key beneficiary of the recovery going forward. As seen from the previous years, TWC has been known to make purchases and invest prudently so as to remain relevant in the future (New HQ, bigger cranes to bid for larger and more lucrative projects). As such, we maintain an Accumulate rating on TWC.

LIM & TAN

CGS CIMB

Pan-United Corporation Ltd ($0.335, unchanged) and Shell Eastern Petroleum (Pte) Ltd have today signed a memorandum of understanding (“MOU”) to explore various decarbonisation solutions in the construction and urban solutions industries. The collaboration is expected to create benefi ts in terms of decarbonisation in the built
environment through the creation of possible new business models and market opportunities.

Pan United Corp, which is riding on the Singapore construction sector up-cycle over the next 3-5 years is also leveraging on
their ability to leverage on their ESG focused business solutions to leap-frog competitors as the Singapore government focuses
increasingly on moving towards a net-zero carbon footprint. We like Pan United Corp’s strategy in aligning themselves with the
Singapore government’s ESG targets as more than 50% of their business serves the Singapore infrastructure sector. At 33.5 cents, Pan United Corp is capitalized at $234.4 million and trades at a forward PE of 18.6x, price to book of 1.2x and dividend yield of 3.9%. Bloomberg consensus 12 months target price is 50 cents, representing a potential upside of 47.1%.

AEM Holdings Ltd
FY22F: S$670m-720m revenue guidance

■ AEM guides for revenue of S$670m-720m in FY22F. It gave capex guidance
at S$10m.
■ The group highlighted some margin compression due to higher supply chain
costs and increased R&D spend to engage new customers.
■ Reiterate Add. Our TP of S$7.90 is based on target P/E multiple of 17.94x
(15% discount to the sector average) on FY23F EPS.
■ Last year, AEM reported full-year results on 25 Feb 2021.

Read More ...