Highlights
KLSE : THHEAVY       TH HEAVY ENGINEERING BERHAD
Last Price Today's Change   Day's Range   Trading Volume
0.815   0.00 (0.00%)  0.805 - 0.82  1,311,400

Overview

Board:Main Market
Sector:Trading/Services
Avg Volume (4 weeks):1,777,390
4 Weeks Range:0.805 - 0.85
52 Weeks Range:0.80 - 1.05
Average Price Target:1.12
Price Target Upside/Downside:+0.305
View Price Target Detail

Headlines

Latest Headlines
25/09/2014  TH Heavy proposes 10% placement
25/09/2014  TH Heavy Engineering - Enter another heavyweight investor
25/09/2014  CIMB Daybreak - 25 September 2014
25/08/2014  TH Heavy Engineering - A lightweight 1H
18/08/2014  TH Heavy Engineering - Hot and heavy roadshow
21/07/2014  神勇的THHEAVY
21/07/2014  TH Heavy Engineering - T(oo) H(ot!)
08/07/2014  Trading Stocks - 8 July 2014 - Hovid | Salcon | Cheetah | Matrix Concept | Muhibah | TH Heavy
12/06/2014  PublicInvest Research Headlines - 12 June 2014
12/06/2014  Maybank Research Highlights - 12 June 2014
02/06/2014  TH重工长期展望正面
19/05/2014  TH Heavy Engineering Bags RM1.2bn Deal for Layang Project Off Sarawak
19/05/2014  PublicInvest Research Headlines - 19 May 2014
16/05/2014  THHE bags EPCIC project in offshore Sarawak
16/05/2014  THHE wins first FPSO contract in RM2.9bil deal
16/05/2014  PublicInvest Research Headlines - 16 May 2014
14/05/2014  Trading Stocks - 14 May 2014 - SBC | Spritzer | THHEAVY | OCK | Muda | Vitrox | GAB | Muhibah

  42 people like this.
 
profithunter holding for long...hope will move
30/09/2014 23:49
kuttyravi maggiel cannot wait Q4 ?? , Dylan1027 jz boring and hopeless and cant wait anymore ??? , profithunter holding for long....hope will move and finally cant wait anymore....if you guys answer negative ...please sell to me fast , I want to collect somemore at current price.....
01/10/2014 01:42
kuttyravi TH Heavy Engineering - Enter another heavyweight investor

Author: value_investor | Publish date: Thu, 25 Sep 10:48 | >> Read article in Blog website

Target RM1.23 (Stock Rating: ADD)

THHE has proposed a placement of up to 10% with the first tranche of 5% to be placed to Pelaburan Mara Berhad (PMB) at 80 sen/share. THHE, which already counts LTH and Tan Sri Quek Leng Chan as its major shareholders, has earmarked the RM42m gross proceeds from the 5% placement for its yard expansion and FPSO venture. We maintain our forecasts for now but flag that we would cut our FY14-16 EPS by 1-4% for a bigger share base following the completion of the 5% placement. We continue to value the stock at a CY15 P/E of 16.4x, a 30% discount to the average P/E of the O&G big caps. A growing order book and a successful FPSO venture are the potential re-rating catalysts. THHE remains an Add and our top pick among the O&G small caps.





What Happened


THHE has proposed a placement of new shares of up to 10%, of which the first tranche of 5% or 52.796m shares will be placed to PMB at 80 sen/share. The gross proceeds of RM42m from the 5% placement will be used to facilitate THHE's yard expansion and floating production, storage and offloading (FPSO) venture. The 5% placement is slated for completion by mid-Oct.



What We Think

Established in 1967, PMB is an investment and asset management company wholly-owned by Majlis Amanah Rakyat (MARA), a government agency. PMB is making an entrance into THHE amidst the latter's operational improvement. To recap, THHE went through a rough patch in 2Q, prompting it to make RM9m provisions for the fabrication and transport & installation businesses. However, we understand that the company has returned to the black in 3Q and aims to secure a sizeable fabrication contract by year-end to expand its order book of RM1.5bn at end-Aug (Figure 1). PMB will be THHE's third largest shareholder, after Lembaga Tabung Haji (LTH) (31.6%) and Tan Sri Quek (9.1%). Imputing the new shares from the 5% placement, we expect to lower our fully-diluted EPS by 1% for FY14, 4% for FY15 and 4% for FY16.



What You Should Do

Accumulate the stock following the recent share price fall brought about by the soft 2Q. The fabrication business is lumpy but we take comfort in the long-term nature of the FPSO business, which landed an 8+10 US$372m contract in May. Furthermore, the stock's valuations are undemanding at 9-13x FY15-16 earnings, lower than the sector average of 14-16x
01/10/2014 01:52
bowman With LTH behind you, you cant go wrong - divine help is just around the corner
01/10/2014 07:57
maggiel i did not mention that i cannot wait for Q4, did i?
01/10/2014 09:53
kuttyravi maggiel , I did not mention that u cannot wait Q4 , did I ??? ( read carefully ...)
01/10/2014 13:20
maggiel u did not explicitly mention.... u implied..... :)
01/10/2014 17:43
dragonfruits Kuttyravi, when will go to rm1.20..
01/10/2014 23:21
maggiel if Q4 results good and with new project granted, should be higher than 1.20
01/10/2014 23:31
bowman the one thing noticeable here is the unimaginable amount of hope against despair.
02/10/2014 09:20


 

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