The group’s core business is the rental and trading of cranes, aerial lifts and other lifting equipment, while also selling and distributing related parts.
In an unrated report issued on Tuesday, analyst William Tng believes that the group is able to handle low- to high-volume projects. It has the dealership rights for the sales and distribution of cranes and parts for Kobelco, one of the world’s top crane manufacturers.
Sin Heng is also the distributor for one of the world’s leading hydraulic crane manufacturers, Kato, as well as Mighty Crane, Arcomet and Manitowoc.
In FY17, the group reversed out of the red with earnings of $1.2 million, driven by an 8.2% y-o-y jump in sales, a 4.1 ppt increase in gross profit margin, and an 11% decrease in administrative expenses.
The group has been paying out dividends regularly when it is profitable.
In the group’s latest 2Q18 results announcement, it reported a 40% drop in earnings to $1 million due to lower revenue.
See: Sin Heng Heavy Machinery posts 40% decline in 2Q earnings to $1 mil on lower revenue
Sin Heng also commented that the business environment continues to be uncertain and competitive, and it expects the markets to remain challenging.
Currently, the group is trading at a historical 0.39 times FY17 book value, compared to the local peer average of 0.43 times.
As at 10.05am, shares in Sin Heng are trading 1 cent higher at 42 cents.
