The group’s crane rental segment registered the strongest growth with segment revenue increasing by 40% to approximately S$90.4 million. The increased size of the Group’s rental fleet in Australia assisted in tapping into demand from the oil and gas and energy sectors, it said. Tat Hong also experienced increased demand in Singapore for projects such as Wafer Fab construction, oil terminal and oil tanking projects. Subsidiaries in Indonesia, Hong Kong and the Middle East also reported good growth in their bottom lines.
Meanwhile, equipment sales continued to be the group’s largest revenue contributor, growing by 23% to approximately S$265.4 million compared to S$216.4 million in FY2006. The company said that demand conditions in the Australian market continued to be strong and this was complemented by the introduction of several upgraded and new models. Sales were also buoyed by strong demand from the marine industry in Singapore and India, strong demand from the Middle East and increased sales to equipment dealers in Europe.
Apart from the group’s ongoing shift in focus towards bigger capacity cranes for rental and equipment sales markets, Tat Hong also aims to secure more long term structured rental contracts. It will continue to actively explore opportunities to expand its Australian operations as well as M & A possibilities to expand its crane rental and general equipment rental businesses.
“We see vast potential for growth in the Chinese market, where tower crane usage is prevalent and the development of equipment rental is still in its infancy. We believe the Chinese market presents excellent advantages for the early mover and our acquisitions are intended to accelerate our penetration into the region.” added Roland Ng, Tat Hong president and CEO.