Tiong Woon - UOB Kay Hian 2024-09-24: FY24 Miss Expectations, But A Brighter FY25 Is In The Cards

• Tiong Woon's management maintains a positive outlook as buoyant demand for its services is observed in Singapore and its other operating markets.

FY24 results below expectations.

• - Read this at SGinvestors.io -
• Gross profit rose 9% y-o-y to S$59m, while gross margin was marginally higher at 41.2% due to higher-margin construction projects secured.

Record dividend proposed.

• Management has proposed a 50% y-o-y higher total dividend of 1.5 cents/share (FY23: 1 cent/share). We note that both Tiong Woon's absolute dividends and payout ratio have trended higher from FY18, in line with EPS growth.

Heavy lift and haulage segment continues to be key growth driver.

• - Read this at SGinvestors.io -
• By geographical markets, the growth was driven by India (+41% y-o-y), Singapore (+2% y-o-y), Middle East (+105% y-o-y) and Thailand (+83% y-o-y), and partially offset by Indonesia (-34%). As a result, profit from the segment marked a commendable 23% y-o-y increase.

Management maintains a positive outlook.

• Read more at SGinvestors.io.

John Cheong UOB Kay Hian Research | Heidi Mo UOB Kay Hian | https://research.uobkayhian.com/ 2024-09-24 SGinvestors.io

---