TCS (0221): TCS GROUP HOLDINGS BERHAD is the industry-best in generating return on it’s shareholders’s equity.
Compared with peers focusing in building construction, TCS generated relatively high ROE. It’s ROE was 46.1% in 2019, almost twice the second highest ROE of 25.9% for GDB.
Revenue and earnings growth were also superior to peers.
Outstanding order book almost tripled to RM952.36m
TCS’s outstanding orderbook almost tripled from 360.57m in July 2020 to RM952.36m as at 31 Dec 2020, equivalent to 3.9x its 2020 revenue. What this means is earnings are poised to grow even in the unlikely case of 0 new project secured this year.
TCS has a good track record in completing projects ahead of schedule. It has good working relationships with major property developers, such as IJM Corporation, SP Setia, Tropicana and UM Land and has received repeat work orders from them.
TCS has submitted tenders for new projects with a total value of RM2.6bn, with historical success rate of 20-30%.
In latest 4QFY20 quarterly report, the management of TCS said it believes that it is well positioned to secure more projects and continue growing its order book moving forward.