Positive news for Tat Hong (Business Times)

Business Times

Tat Hong set to beat profit goal

SINGAPORE - Singapore heavy lifting equipment provider Tat Hong is confident of surpassing its target of 25 per cent annual net profit growth for the next three years, bolstered by an upsurge in infrastructure projects in Asia.Mr Ng said that Tat Hong is eyeing acquisition targets in Australia - through 70 per cent owned subsidiary Tutt Bryant - and in China, Tat Hong, which has seen its market value more than double to US$839 million in half a year helped by the building boom, had reported a 66 per cent jump in first-quarter net profit to $17 million (US$11.6 million).'Based on our first quarter results, we feel confident that we will surpass the growth target,' Tat Hong chief executive Ng San Tiong Roland said in an interview on Friday.To sustain its growth, Mr Ng said Tat Hong, which has the world's largest fleet of crawler cranes with 450 units, is eyeing acquisition targets in Australia - through 70 per cent owned subsidiary Tutt Bryant - and in China.Mr Ng said the home-building slump in Australia will not have a significant impact as 80 per cent of sales come from the oil and gas industries, and from infrastructure projects.In China, Tat Hong plans to double its existing tower crane fleet to about 200 units by the of 2008, and expects China to contribute 20 per cent to sales by 2010, Mr Ng said. -- REUTERS