TTJ Holdings' profit skyrocket 66% to $26.2m in FY16
Revenue soars 45% to $138m.
TTJ Holdings Limited, a structural steel fabricators in Singapore, saw its revenue growing 45% yoy in FY16 to US$100m (S$138m) while net profit rising 66% yoy to US$19m (S$26.2m), according to CIMB.
TTJ has two key business segments: structural steel and a dormitory business. FY16 revenue growth was driven by the 59% yoy increase in the structural steel business. The dormitory business saw a 6% yoy decrease. The gross profit margin was maintained at 29% and an interim DPS of 1.7 Scts was declared.
TTJ guided that as at 26 September 2016, its order book stood at US$35m, which it expects to substantially complete between FY17 and FY18. The tenure for the dormitory at Terusan Lodge I expires in January 2017 and the Building and Construction Authority in Singapore has not approved the group’s application for a renewal of a further term of tenancy.
TTJ said that the non-renewal of this dormitory is expected to have a material impact on the group’s financial and operating results for FY17.
As at end-FY17, the net cash position was US$65m. According to management, the group is actively exploring new business opportunities. If it is successful in clinching these opportunities, management noted that its working capital requirements might increase.
The group incorporated a new subsidiary in Singapore named TTJ Green Energy Pte. Ltd. on 8 September 2016.