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Teho Knows The Ropes To Survive
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By: David Chung
Articles (1) Profile

With the STI moving steadily upwards in recent weeks, Teho International (Teho) made its Catalist debut on 4 June 2009, hoping to benefit from the improved market sentiment. Listed at $0.24 apiece, Teho’s share price rose to a high of $0.39 before closing at $0.315 on its maiden day of trade.

Highly Experienced
With an established reputation of more than two decades, Teho is a supplier of rigging and mooring equipment as well as related services to customers mainly in the marine and offshore oil & gas industries. Teho also partners with established manufacturers for the supply of reliable and quality rigging and mooring equipment.

Rigging equipment comprises steel wire rope, synthetic fibre sling and chain which are assembled with other connectors and fittings (such as clamps, shackles, masterlink, hammerloks, hooks and turnbuckles) to form different variations of slings, depending on applications, generally for lifting purposes. Mooring equipment consists mainly of steel wire and synthetic fibre ropes and is used for docking the vessel to the dock.

mooringTeho’s related services cover mainly load testing, installation and certification of rigging equipment. Load testing serves to verify the rated working capacity of the rigging and mooring equipment. All lifting equipment are required to have valid load test certificates. Good safety practice requires such equipment to be tested and re-certified annually.

Teho’s sales and marketing network covers mainly South East Asia, East Asia, Australia, Europe and North America, with Singapore as its headquarter. A subsidiary was set up in North Carolina, USA to facilitate sales and marketing activities to tap opportunities in the North American region.

Established Track Record
Teho’s main competitors in the oil & gas industry are Marinehub, a subsidiary of Singapore-listed Aqua-Terra Supply and KTL Offshore, a subsidiary of Singapore-listed KTL Global. Leveraging on its experience and expertise, Teho has a proven track record and an established relationship with its diversified consumer base in the marine and offshore oil & gas industries. Repeat customers, which accounted for approximately 93% of revenue in FY08, value the quality and reliability of Teho’s products and services. Long-term relationships have been established with suppliers whose products are certified by organizations such as Lloyd’s Register to facilitate meeting existing customer requirements as well as new ones.

established1Making use of its links with third party service providers in other regions, Teho has established logistics points in major shipping and offshore oil & gas hubs such as Rotterdam, Houston and Dubai through the service providers in Antwerp (Belgium), Houston (USA) and Sharjah (UAE) to distribute products to its customers, providing overseas logistic points and opportunities to serve a wider range of customers in this region. This allows Teho to have a better understanding of its customers without having a physical base there while customers have the convenience of utilizing Teho’s resources to provide the relevant products at predetermined locations.

Teho’s Executive Chairman and CEO, Lim See Hoe has more than 15 years of experience in the supply of rigging and mooring equipment and his experience was instrumental in turning Teho into what it is today. By carrying an extensive range of rigging and mooring equipment under established brands such as Kiswire, Dong Yang and Wirelock at competitive prices, Teho is able to respond quickly to customers’ demands and source for the required products in a timely manner. This allow ships docking in Singapore to secure the necessary supplies and equipment within a short time before departing.

underlying1Expansion Plans
Currently, Teho’s businesses are mainly found in Singapore. Teho hopes to be in closer proximity with its major oil & gas clients and maritime sectors by expanding its activities in other regions. Teho’s management believes that there is significant potential for its products and services globally and hopes to tap into other regions such as Australia, the Middle East, PRC and North America through acquisitions of local companies which provide synergistic opportunities with its existing business.

Teho intends to expand its product range as part of its strategy to provide better services and greater product availability to its customers. It has already begun supplying high performance steel wire ropes manufactured by quality brand Kiswire to high quality lifting systems such as cranes. Teho is also looking into offering other types of equipment such as winches and deck equipment to extend its existing product range.

Lastly, Teho has expressed interest in expanding its storage and fabrication capacity to cater to its existing and potential customers’ demands in other regions. It is currently building two facilities in Singapore with an aggregate land area of approximately 18,000 sqm.

Although the current outlook for the marine and offshore oil & gas industries remains uncertain due to the global economic downturn, Teho believes that the underlying demand for these industries remains positive in the long run. Current oil prices are hovering above US$60 over the past few months and its resurgence would be pivotal to the future success of the oil & gas industry.

Teho Int'l  -- -- --   
Business: Co is a supplier of rigging and mooring eqmt as well as related svcs to customers mainly in the marine & offshore oil & gas industries. [FY18 Turnover] Marine, offshore oil & gas (73.4%), property development (26.6%).

Insight: Feb-19, 1H19 revenue fell marginally by 0.4% to $2... Read More
KTL Global  0.045 -- --   
Business: Co is a supplier of rigging equipment and related services.

Insight: Feb-19, FY18, revenue for the 18 months ended 31 D... Read More

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