In an April 9 unrated report, analyst William Tng says the group has built a solid reputation as a reliable contractor with the ability to undertake a wide spectrum of projects for both public and private sector clients.
The group has also ventured overseas through joint-ventures in property development projects in China, Thailand and Cambodia, says Tng.
As at Dec 31 2017, TA Corp's construction order book stood at $241 million which would be delivered progressively over the next three years.
In Johor, TA Corp also has a pre-cast concrete components manufacturing plant with a capacity of 36,000 cubic meters p.a.
TA Corp also has an 80% stake in TK Modular which designs, develops, manufactures and distributes Prefabricated Prefinished Volumetric Construction (PPVC) modules to Singapore developers.
Besides construction, TA Corp also has a fast-growing distribution business in Myanmar. Its 51%-owned Que Holdings is the exclusive distributor of the Continental brand of passenger & light truck tyres as well as the sole distributor of Shell lubricants.
Another associate, 50%-owned Myanmar Synergy, is the exclusive distributor of trucks, buses, vans and other commercial vehicles.
TA Corp says it will continue to cautiously explore real estate development business opportunities both locally and overseas as well as increase the rental and occupancy rates of its foreign workers' dorm even though the market remains challenging.
At 27 cents, TA Corp is trading at 0.72 times FY17 book value with a dividend yield of 3.70%.
