SINGAPORE – 8 March 2017 – T T J Holdings Limited (“T T J” or together with its subsidiaries, the “Group”) posted a net attributable profit of $7.2 million for the six months ended 31 January 2017 (“1HFY2017”) on the back of revenue totalling $46.5 million, compared to $9.5 million and $54.2 million respectively for the six months ended 31 January 2016 (“1HFY2016”).
The Group’s performance was impacted by a challenging economic environment and intensified competition, as well as the expiry of tenure for the Terusan Lodge I dormitory, which resulted in lower revenue contributions from both its structural steel and dormitory businesses.
Nevertheless, the Group has successfully secured a few projects which add up to a total order book of $59 million to-date, one of which is to supply and install structural steelworks for Funan DigitaLife Mall.
T T J’s Chairman and Managing Director, Mr Teo Hock Chwee (张福水) said, “The operating environment in the last six months has been intensely competitive. Despite this, we managed to add on new projects to our order book. We are hopeful that there will be more business opportunities for us to pursue this year given that the BCA has forecast that public sector construction demand in 2017 will rise.”
:Press release: T T J 1HFY2017 Results
In January 2017, the Building and Construction Authority (“BCA”) projected the total construction demand or the value of construction contracts to be awarded in 2017 to reach between $28.0 billion and $35.0 billion, mainly due to an anticipated increase in public sector construction demand. This projection is higher than the preliminary estimate of $26.1 billion for 2016. The public sector is expected to contribute about 70% of this total construction demand, boosted by an increase in demand for most
building types and civil engineering works.
Looking a little further, the BCA expects the average construction demand to be between $26.0 billion and $35.0 billion per annum in 2018 and 2019 and between $26.0 billion and $37.0 billion per annum in 2020 and 2021. Besides public housing developments and more healthcare and educational facilities, public sector demand over the medium term will be supported by various upcoming mega infrastructure
projects such as the Jurong Regional Line, Cross Island Line, and various infrastructure developments for Changi Airport Terminal 5.
Continued increase in demand but limitation of supply in the Asia Pacific
Region Quotes: “Problem is, manufacturers can’t make cranes fast enough”
“Sources in Europe have dried up”; and
“It’s not just cranes in short supply, the simultaneous building booms in
the Emirates…. Have swept the market of bulldozers, excavators, etc”)
(Source: “Dubai sprouts a forest of building cranes”, AFX International Focus)
• Numerous infrastructure projects and tight supply of cranes will continue
to push up
Prices of both new and used equipment
Middle East: Construction boom boosted demand for heavy equipment
• Abu Dhabi planning to invest US$170bn over the next 5 years, of which US$150bn
earmarked for real estate and the rest to the petrochemical sector
India: Infrastructure outlook
• Government targeted to raise US$50 billion annually for projects such as power plants, ports, roads and airports
Indonesia: Infrastructure & Economic Outlook
• Government is seeking 25 major infrastructure projects worth S$7 billion
• Government estimated double-digit GDP growth over the next 10 years
Ride the construction rally with exposure to these non-construction stocks
10/03/17, 01:39 pm
SINGAPORE (March 10): The Edge Singapore last week covered which construction stocks are the best bets as the sector experiences a surge on the back of a slew of public-sector infrastructure projects coming online this year and the next.
(See also: With construction plays rallying, which ones should you look out for?)
However, construction plays are not the only ones riding this wave of growth.
Local construction and engineering firms will not be the only beneficiaries of the Building and Construction Authority’s estimates of public sector construction demand averaging between $26 billion and $37 billion a year from 2018 to 2021.
Investors should also consider the building materials suppliers. There are at least 15 such names listed in Singapore, and unlike the construction companies, these players tend to have little to no debt, and most are in a net cash position.
Still, no two stocks are exactly alike and some are performing better than others. One recommended stock is NSL, formerly known as NatSteel, which manufactures precast concrete components and prefabricated bathroom units.
Meanwhile, tile, flooring and fittings specialist Hafary Holdings is underperforming its peers with shares retreating 12% this year to close at 17.6 cents as of March 6, 2017.
Govt relaxes SSD, TDSR rules for residential properties; introduces new stamp duty for property-holding entities
10/03/17, 01:22 pm
SINGAPORE (March 10): Even as Singapore’s property cooling measures look set to remain, the government on Friday announced a reduction of Seller’s Stamp Duties (SSD) and changes to the Total Debt Servicing Ratio (TDSR).
In addition, Second Minister for Finance Lawrence Wong in parliament on Friday introduced a new stamp duty levied on the purchase and sale of residential property in property-holding entities (PHEs).
The changes will kick in from March 11.
Meanwhile, there will be no changes made to the current Additional Buyer’s Stamp Duties (ABSD) rates and Loan to Value (LTV) limits as “transaction volumes in the private residential property market remain healthy,” say the Ministry of National Development (MND), Ministry of Finance (MOF), and Monetary Authority of Singapore (MAS) in a joint release.
Seller’s Stamp Duties (SSD)
The SSD is currently payable by those who sell a residential property within four years of purchase, at rates of between 4% and 16% of the property’s value.
With effect from March 11, the government will reduce the holding periods to up to three years.
The rates have also been lowered by four percentage points. The new SSD rates will range from 4% for properties sold in the third year to 12% for those sold within the first year.
Total Debt Servicing Ratio (TDSR)
Currently, there is a TDSR threshold of 60% for property loans extended by a financial institution.
This was implemented to encourage prudent borrowing by households and strengthen credit underwriting standards by financial institutions.
The government today announced that it is removing the TDSR for mortgage equity withdrawal loans with LTV ratios of 50% and below.
According to the statement, this move comes after feedback from some borrowers that the TDSR framework has limited their flexibility to monetise their properties in their retirement years.
Alignment of stamp duties
Transactions in residential properties will now be treated on the same basis, regardless of whether the properties are transacted directly or through a transfer of equity interest in an entity holding residential properties.
Significant owners of residential property-holding entities will now be subject to the usual stamp duties when they transfer equity interest in such entities, similar to if they were to buy or sell the properties directly.
MND, MOF, and MAS stressed that the intent is not to impact the ordinary buying and selling of shares in such entities by retail investors, where the entities are listed on the Singapore Stock Exchange.
The bill was introduced and passed in Parliament today.
It comes after several high-profile deals, including banker Wee Cho Yaw’s purchase of 45 unsold units of The Nassim from CapitaLand for $411.6 million through the purchase of a 100% stake in Nassim Hill Realty.
An intelligent way to watch would be more child policy, more marriage policy, the opening of immigration policy, lifting of property curbs by the government and/or incentives support by the government.
Singapore property stocks gain on housing duty cuts
SINGAPORE - Singapore shares rose nearly 1 percent on Friday, led by real-estate stocks after the city-state lowered stamp duties on sale of residential properties, while most other regional markets fell as they braced for a U.S. rate hike as early as next week. Singapore cut stamp duties that sellers are required to pay on residential properties and eased some rules on borrowing thresholds, in an effort to relax property curbs imposed since 2009 to rein in the market. -
Singapore said it would cut by 4 per cent points across each category the stamp duty now imposed on sales of residential property within four years of purchase. It will also cut the holding period to three years.
Rules on the total debt servicing ratio (TDSR) framework will also be relaxed, the authorities added, reflecting feedback from some borrowers that the measure limited flexibility to borrow against the value of their properties and raise cash. - See more at: