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Singapore’s Big Winner of the Week: Triyards Holdings Ltd

Triyards Holdings Ltd (SGX: RC5), which is the fabrication arm of Ezra Holdings Limited (SGX: 5DN), has zoomed up by 18.2% since last Friday to close at S$0.455 on Thursday.

In comparison, Singapore’s market barometer, the Straits Times Index (SGX: ^STI), has inched up by only 0.2% over the same time frame. This makes Triyards a big winner this week.

Triyards is a firm that provides shipbuilding, ship conversions, medium to heavy fabrication works, and ship repair services for the offshore and marine industries. It became a listed company by way of introduction back in 2012.

On Monday, Triyards announced its financial results for its fiscal second-quarter ended 28 February 2015. Revenue for the quarter sank by 18% year-on-year to US$61 million while net profit declined some 34% to US$5 million.

But while the earnings release had a gloomy air around it, Triyards also announced some brighter news on the same day itself. The marine engineer revealed that it had won some US$100 million worth of contracts for a “liftboat, a high speed aluminum craft project including integrated logistics support work and a fabrication project” from repeat customers.

The liftboat is slated for completion by August 2016 and with this new order win, Triyards’ outstanding orders will be upped to 11 liftboats.

Chan Eng Yew, Triyards’ Chief Executive Officer, commented on the contract win:

“Our fast-growing contract wins across a diverse product range demonstrate the industry’s high regard for our fabrication capabilities in both steel and aluminium vessels. Not only are we able to deliver on our exclusively-designed liftboats, we are also gaining traction in securing other types of vessel orders. With these new wins, we enhance our leading position as a global premier liftboat and high speed aluminium craft engineering specialist in Asia.”

Triyards is currently trading at just four times its historical earnings and has a dividend yield of 2.2% (based on its dividend of S$0.01 per share for its last completed fiscal year).

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.