• King Wan Corporation has demonstrated a certain longevity as a listco on the Singapore Exchange. 2025 marks the 25th anniversary of its listing. • Its main business is mechanical and electrical (M&E) engineering. A smaller bet is portable toilet rentals locally—steady, but not huge.  As far back as 2014, King Wan has been a key M&E contractor for iconic projects such as the Singapore Sports Hub. • On the side, it has a slew of investments. These are properties in Thailand and China, a stake in a Tuas South workers dormitory, and co-ownership of a bulk carrier ship called Hai Jin. King Wan also has a slice of Kaset Thai International Sugar which is listed in Thailand. • King Wan's stock has risen 110% from ~2.5 cents six months ago to 5.4 cents recently. • For more on King Wan, read Lim & Tan Securities' report below ... |
By Lim & Tan Securities
| King Wan announced the proposed disposal of its entire 30% shareholding interest in Gold Hyacinth Development Pte. Ltd. (GHD), an indirect associated company of King Wan Corporation Limited, to Mrs. Nawarat Wangpreedalertkul (“the Purchaser”) for an aggregate purchase consideration for the Sale Shares is S$3,560,000. This consideration was determined by taking into account the carrying amount of the Group’s advances to GHD (c. S$3,362,000) and the estimated net proceeds that would accrue to the Group if GHD’s vessel, Hai Jin, were sold at its indicative valuation of US$15 million. |
Based on FY2025 figures, the Sale Shares carried net tangible liabilities (NTL) of approximately S$1,588,000, and the investment was loss-making, with
a net loss attributable to the Sale Shares of about S$99,000.
The Board considers the Proposed Disposal beneficial as it allows the Group to recover its investments and advances (the Shareholders’ Loan) and avoid further funding commitments to GHD.
The transaction is expected to result in a gain on disposal of approximately S$198,000, based on the nil book value of the Sale Shares and the carrying amount of the advances to GHD.
Net proceeds, estimated at S$3,530,000 after deducting S$30,000 in expenses, will be applied towards the Group’s general working capital to enhance near-term liquidity.
Illustratively, based on FY2025 figures, the disposal would increase NTA per Share from 9.91 cents to 9.93 cents and raise EPS from 0.49 cents to 0.52 cents.
| Stock price | 5.4 cents |
| 52-week range | 3-5.8 cents |
| Market cap | S$37.7 m |
| PE (ttm) | 10 |
| P/B | 0.49 |
| Dividend yield (ttm) | -- |
| Source: Yahoo! | |
Separately, King Wan is a mini conglomerate and apart from GHD, it also owns :
| • a 20% stake in TA Corp’s dormitory worth slightly north of S$200mln (worth c.S$40mln to King Wan), • commercial properties in Thailand (30% stake in the associate, S.I. Property Co.), • property developments in China (46.2% ownership in Dalian Shicheng Property Development) and • a 2.9% equity interest in Kaset Thai International Sugar Corporation (worth S$5.7mln). |
Its main business is in Singapore M&E and renting/operating mobile lavatories and other ancillary facilities for construction sites and public events.
King Wan MD Chua Eng Eng Unlike other construction stocks that have already seen profit recovery and share price appreciation, King Wan’s earnings remain weighed down by legacy low-margin contracts secured during the Covid-19 period.
These contracts continue to suppress profitability in its core M&E operations, explaining why its share price performance
has lagged construction peers.
That said, we understand that these lower-margin projects are gradually tapering off, and the worst appears to be over for King Wan.
Going forward, the company should see improving core M&E profitability as it executes newer, higher-margin contracts from its refreshed order book.
We believe that a rising construction tide will lift all boats, and price discovery for King Wan should emerge once its core operations deliver stronger margins.
Meanwhile, the company is actively monetizing non-core assets, which should further strengthen its balance sheet.
At a market capitalization of S$32.8 million and P/B of 0.5x, we believe King Wan is undervalued in terms of both its future construction earnings and their asset base, which includes a dormitory asset worth at least S$40 million, a stake in Kaset Thai International Sugar worth S$5.7 million, and additional holdings in Thai commercial and China development properties. We are increasingly positive on King Wan and recommend that investors take a closer look at its improving fundamentals, supported by a portfolio of undervalued assets that is in the process of monetization. |
See also: TIONG WOON, HONG LEONG ASIA: Undervalued Winners in Singapore’s Construction Surge