NamCheong and Tat hong entered my portfolio today, 2 great companies, that operate rispectively in the marine and crane businesses.
Rationale for acquiring NamCheong:
- 100% strong buy rating for analyst
- +25% potential increase on stock price in the next 2/3 quarters
- very promising returns with increasing revenues (+171%) and operating profits (+87.7%) YoY
- strong CAPEX influx in the Oil & Gas industry projected in the next 5 years (mainly driven by the Johor project in MY by Petronas)
Rationale for acquiring Tat Hong:
- 100% strong buy rating from analyst
- Singapore infrastructure development in the next 5 years is bullish (see Singapore Population White Paper) driven by population increase of ~6.9M people
- New project beying developed (rail system, houses, roads, ...) -
- Strong demand for Crane business as a result
