Tuesday February 7, 10:17 PM
SINGAPORE : Crane company Tat Hong Holdings is reaching out into markets in China, the Middle East and Indonesia.
It is aiming to build on a strategy that has helped the company extend its presence over the last 30 some years, with offices from Australia to Vietnam.
But getting there hasn't been easy.
It had to overcome problems like assimilating foreign cultures and getting the right local people to run its network.
If there is one thing that differentiates crane company Tat Hong, it is the ability to claw a niche for itself in an industry dominated by big foreign boys.
Today, the small homegrown Singapore firm has taken the No. 1 spot in the world crawler crane business, despite having a market cap of only just S$370 million.
Tat Hong is already in 14 cities, and now wants to expand further into China, the Middle East and Indonesia.
"Market sentiment is good for the next few years and there is a lot of infrastructure projects coming out in this part of the world. So I think we can tap on to this economic growth and expand overseas more rapidly within the next few years," said Roland Ng, chief executive of Tat Hong Holdings.
About 75% of Tat Hong's turnover comes from overseas, and it wants this contribution to grow to 85% within the next two years.
The firm was founded in the 1960s by Ng Chwee Cheng, father of the current CEO, Roland Ng.
When Singapore's housing and construction market took off in the 1970s, Ng senior saw the potential in the heavy equipment business.
But instead of trying to compete with giants like Caterpillar or Komatsu, he decided to specialise in the less crowded and lower capital-intensive crane business.
And the strategy has certainly paid off.
But making the right decision to specialise and choosing the right niche to move into are not enough to ensure success.
According to Roland Ng, being able to overcome competition wherever you set up shop is also crucial.
And to do that, getting the right local staff for your overseas branches is all-important.
"It's always a problem - getting the right people to run the operation. Because sometimes, we don't understand the overseas culture," said Roland Ng.
"So we need to get the local people who understand the culture to run the show. There will always be a risk that we might get the wrong people to run the show and get into problems," he said.
Tat Hong was listed on the Australian stock exchange in 1996 and on the Singapore bourse in 2000.
- CNA /ls
http://sg.news.yahoo.com/060207/5/singapore192067.html
Tat Hong eyes further expansion into overseas markets
Book Review - The Great Stock Adventure
Just received this book in my mailbox. This is already my fifth book from Wallstraits.com, a companion to my investment adventure. This book is an easy read compared to the previous book 'The Philosophical Investor'. It is clear to its point, imaginative and colorful.
Three different characters Sophie, Old Bob and Ethan ,each with its own "investment" strategy. But ultimately, this book has several important investment morals to tell.
I am a Ethan kind of investor but occasionally still "seduced by" Sophie. Haha. A lot of suspense.
I would recommend this book to all, for starters and even "experienced" investors alike. Just because its such an easy read, busy investors like me can occasionally read through this book to realign our possibly wavering investment philosophy as we are constantly bombarded with new information. Wallstraits own book review
Once upon a time, there was an epic adventure involving three Singaporean investors in search of The Great Stock, the ultimate investment opportunity, guided by a far-away investment guru of almost mythical stature.
The Great Stock Adventure is experienced through the eyes of four main characters: The Great Guru, an elderly icon of uncanny investment prescience and astonishing accomplishment; Ethan, our energetic young local Singaporean investment hero; Sophie, a sophiscated, elegant and highly speculative personality; and Old Bob, a kindly man with a wealth of life experience, yet lacking confidence in his own ideas.
Like all good adventure parables, our little story will leave you, the reader, with several important investing morals to ponder. Enjoy the adventure!
Trust your own view
Cheers
Niversphere