Following our previous post on our thoughts on the privatisation offer of Tat Hong Holdings, we thought we share some of our findings on the Tower Crane Leasing Industry within Singapore.
Within Singapore there are 3 main listed players – Tat Hong Holdings, Sin Heng Heavy Machinery and Tiong Woon Corporation.
While all 3 players are in tower crane leasing there are slight differences in terms of the industries that they supply their cranes. For example, Tat Hong only supplies to the construction industry whereas for Sin Heng and Tiong Woon, they service the Oil & Gas and Offshore Marine industries alongside the construction and infrastructure industry. However, all in all, looking at the capital cycles given how the construction, O&G and Offshore Marine sectors have been on the decline, these companies have been hit in terms of their valuations. Hence, this was what prompted us to look into the industry.
Valuations...