Staying the course. The second workshop is ready to welcome more business - this will propel Technics growth ..
AmFRaser...... > during our visit to Technics’ Loyang yard, we observed that the second workshop was basically complete and almost ready for production. Management has clarified that, indeed, they are simply waiting for the Temporary Occupancy Permit
(TOP) to be issued to begin work in this second workshop.
In the past, the Technics Tuas yard has generated about S$100m annually in revenue at full-capacity load with the balance being contributed by subsidiaries. We estimate the second workshop to add S$70m to the capacity, and factoring in contributions from subsidiaries (with Norr Systems representing the bulk of the difference), future full capacity could be in the range of S$200 – S$220m.
Our
fair value is raised slightly to $1.22, and including the
expected dividends over the period, this represents a
total expected return of +35.1%.
Stock is soft today, down 1.5 cents now. Stock can 't seem to move decisively out of the 99 cent barrier and keeps falling back a bit --- now 97 cents. Seems like a trading stock but the longer term fundamentals are good and getting even better
The survey ship that was damage during recent incident between China and Vietnam, belongs to customer of Technic. Well more business for Technic.....better profit/div
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