Tiong Woon FY25 - UOB Kay Hian 2025-09-02: Heavy Lift, Heavy Capex; Downgrade To HOLD

• We downgrade Tiong Woon to HOLD with a higher target price of S$0.73, as the high capex cycle weighs on near-term cash flow and gearing. Fleet deployment and margin recovery remain potential re-rating catalysts.

FY25 earnings in line; revenue beat.

• - Read this at SGinvestors.io -
• For 2HFY25, revenue rose 25% y-o-y to S$85m, but PATMI dipped 4% y-o-y to S$7m on margin pressure from cross-hiring and project mix.

Healthy profit growth despite margin compression.

• - Read this at SGinvestors.io -
• With Tiong Woon continuing to expand its fleet and deploy heavier-tonnage cranes, reliance on cross-hiring should ease, paving the way for margin recovery.

Higher dividend reflects confidence.

• Read more at SGinvestors.io.

Above is an excerpt from a report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full PDF report @ https://www.utrade.com.sg/.

Previous report by UOB:
2024-09-24 Tiong Woon - FY24 Miss Expectations, But A Brighter FY25 Is In The Cards.

Price targets by other brokers at Tiong Woon Target Prices.

Listing of research reports at Tiong Woon Analyst Reports.

Relevant links:
Tiong Woon Share Price History,
Tiong Woon Announcements,
Tiong Woon Dividend Payout Dates & Corporate Actions,
Tiong Woon News