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Huationg Global: Standing Out From The Crowd
Corporate Digest, Featured | 23 January 2015
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By: Tan Jia Hui
Articles (82) Profile

Investors have been kept busy in the last two months of 2014, with the initial public offerings (IPO) of seven companies on the Singapore Exchange (SGX). It is certainly hard to keep up with all the hustle and bustle without getting an overload on information.

So in case you have missed it, Huationg Global is a fully-integrated civil engineering firm established since 1983 that raised $5.5 million in its recent listing on 9 December 2014.

Not Your Typical Construction Company
At first glance, investors may easily mistake Huationg Global for just another construction company listed on the SGX.

However, it should be pointed out that the group actually operates three main business segments namely, civil engineering services, inland logistics support services and construction material sales.

A wide range of services are provided in its civil engineering business including stockpile management, infrastructure, drainage, compacting and demolition works.

The firm’s inland logistics business entails the provision of construction equipment for rent, including trained operators. As disclosed in the Offer document dated 1 December 2014, it has a fleet of 149 tipper trucks and 388 units of other construction equipment.

Lastly, Huationg Global’s construction materials segment focuses on the sale of recycled concrete aggregates and liquefied soil stabilisers (LSS), both derived from the recycling of construction waste and channelled backed into use for construction projects.

As of FY13, the group reported $108.5 million in sales. The civil engineering segment is the largest contributor to revenue (73.4 percent), followed by inland logistics support (22 percent) and sale of construction materials (4.6 percent).

Sustained Demand In The Public Sector
At the moment the group has a significant exposure to public sector projects.

According to data published by BCA, public sector demand commonly contributes to the larger amount of total civil engineering services for the past years.

For 2015, BCA estimates that contracts awarded for public sector civil engineering contracts will be between $7.5 billion and $8.3 billion.

Besides the Thomson-East Coast MRT Line, plans to clear large areas in order to create liveable areas in Defu estate, Tampines and a new town near Boon Lay is expected to help sustain public sector civil engineering demand on top of industrial projects anticipated.

Source: BCA. 2014P: Based on preliminary figures released. 2015F: Based of median value of estimated range.

The projected strong pipeline of projects in the public sector is good news for the group, to help sustain its growth momentum and to keep its civil engineering order book healthy.

As of 31 October 2014, the firm’s order book stands at $114.3 million, which revenue will be recognised in proportions over the next one to three years.

The buoyant demand for civil engineering works is in contrast to that of building works.

So, with a seemingly benign backdrop, how does the group plan to propel itself going forward?
Learn more about Huationg Global’s strategic game plan for more insights.

Armed with a bachelor in mathematics, Jia Hui keeps close tabs on the oil & gas, and manufacturing sectors in Singapore.

Please click here for more information about this author.

Huationg Global  -- -- --   
Business: Provides civil engineering services for infrastructure projects & ancillary inland logistics support services. [FY18 Turnover] Civil engineering (87.5%), sale of construction materials (6.7%), inland logistics support (5.8%).

Insight: Mar-19, FY18 revenue rose 13.1% due to increased r... Read More

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