Why Tiong Seng's second quarter results were 'very disappointing'

Profits crashed 78% to 2.1m.

According to OSK, Tiong Seng reported a very disappointing 2QFY13 results with profits of SGD2.1m (-78% y-o-y) on the back of SGD103.7m revenue (-16% y-o-y).

Here's more:

This is largely due to a decline in revenue from construction contracts as well as the dismal performance from its associate. The group has forayed into
Myanmar similar to that of Yoma and Yongnam which all reported disappointing results recently.

As such, we are cautious towards the group’s short-medium-term outlook.

The counter is currently trading at FY13 P/E of 7.6x, the highest amongst its industry peers such as KSH and UE E&C which reported better results and offered high yields. We expect downward correction to its share price.