Tiong Woon Corporation Holding has announced a 6% year-on-year increase in its profit after tax and minority interests (PATMI) for the financial year 2025, reaching S$19m. This growth aligns with expectations, driven by a 14% rise in revenue to S$164m, attributed to robust heavy lift and installation activities across regions including Singapore, Thailand, Malaysia, and the Middle East. Despite this, the company has downgraded its stock to a “hold” rating, citing the impact of a high capital expenditure cycle on near-term cash flow and gearing.
The company’s gross profit increased by 4% to S$61m, although gross margins narrowed by 3.6 percentage points to 37.6%, primarily due to cross-hiring and a less favourable project mix. Tiong Woon declared a higher final dividend of 1.75 Singapore cents per share, raising the payout ratio to 21%, reflecting management’s confidence in sustainable earnings.
Tiong Woon’s heavy lift and haulage segment saw a 15% rise in revenue to S$160m, with marine transportation also rebounding significantly. However, the trading segment recorded a small loss. The company’s position was reinforced by retaining its 15th spot on the IC100 Cranes 2025 Index, marking it as the highest-ranked Singapore-based crane-owning company.
Looking ahead, Tiong Woon anticipates resilient demand in its core markets, supported by activities in petrochemical, semiconductor, infrastructure, and construction sectors. The company aims to leverage its position as a one-stop heavy lift specialist to capture opportunities whilst managing costs and cash flow. Potential catalysts for future growth include successful deployment of new cranes and margin recovery as cross-hiring eases.
“`
