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Singapore’s Big Loser for the Week: Tat Hong Holdings Limited

Credit: hobvias sudoneighm

Tat Hong Holdings Limited   (SGX: T03), with its 8.4% decline since last Friday to end this week at S$0.49, is one of the big losers in Singapore’s market this week.

For perspective, the market barometer, the Straits Times Index (SGX: ^STI), had slipped by “only” 1.6% during the same period.

Tat Hong is a supplier of cranes and heavy equipment to a wide range of industries such as construction and engineering, oil and gas, and infrastructure. According to its website, it is “the largest crane company in the Asia-Pacific region and seventh worldwide” in terms of aggregate tonnage.

The company currently has operations in the Asia-Pacific region including Singapore, Malaysia, Thailand, Indonesia, Hong Kong, China, Vietnam, and Australia.

On 17 June, the company announced that it has entered into a contract with Ashover Investment Pty Ltd for the sale-and-leaseback of a property at 14 Ashover Road in Queensland, Australia, for A$6.3 million (around S$6.5 million).

Under the agreement, Tat Hong’s subsidiary, Tutt Bryant Group Limited, will lease the property from Ashover Investment for a “period of 12 years at base rental of A$0.53 million (S$0.55 million) per annum, subject to a fixed annual base rent adjustment as well as index and market reviews on set intervals within the lease term”. After the deduction of the relevant expenses, Tat Hong would realise a gain of A$3.5 million (S$3.6 million) on the property.

The firm is going at 68 times its historical earnings currently.

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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.