TUA - Tuas Limited

[System]

Tinho Union Group (Australia) (TUA) has acquired a travel service e-commerce platform targeted at corporate business travel sectors in China. The Company will license the use of its travel service e-commerce platform to travel service providers.

http://au.afssec.com

 

[Dona Ferentes]

the above company must have slipped beneath the waves without much notice.

S&P Dow Jones Indices announced today that it will make the following changes in the S&P/ASX 200 Index, subject to final court approval of the scheme of arrangement under which TPG Telecom Limited (XASX: TPM) will spin-off Tuas Limited (XASX: TUA). Following the demerger, TPG Telecom Limited will merge with Vodafone Hutchison Australia Pty Limited (VHA). TPG Telecom Limited will spin-off 1 share of Tuas Limited for every 2 TPG Telecom Limited shares held.

Tuas Limited will be added to the S&P/ASX 200 Index after the close of trading on June 29, 2020 at a zero price. S&P Dow Jones Indices will review Tuas Limited for ongoing S&P/ASX 200 eligibility once it commences trading. Any potential index membership changes will be announced after the close of trading on June 30, 2020, effective after the close of trading on July 2, 2020. The post-merger TPG Telecom Limited (XASX: TPG) will remain in the S&P/ASX 200 Index following its merger with Vodafone Hutchison Australia Pty Limited.

What is the Tuas Group?
The Tuas Group will be comprised of Tuas, TPG Singapore and Tuas Solutions. TPG Singapore owns and operates a national 4G mobile network in Singapore.

Overview of TPG Singapore

TPG Singapore is the newest mobile network operator to enter the Singapore telecommunications market having acquired a portfolio of wireless spectrum at the New Entrant Spectrum Auction in December 2016. TPG Singapore owns and operates a modern national 4G mobile network in Singapore and, as at the date of this Information Memorandum, has achieved nationwide outdoor mobile network coverage of greater than 99.7%.

Unencumbered by the need to maintain legacy mobile networks, TPG Singapore’s modern network infrastructure and automated business support systems provide a cost advantage relative to its peers, which it will use to deliver what it considers to be a competitive mobile service offering to consumers. TPG Singapore launched a free trial service in December 2018 onto which it had onboarded approximately 412,000 users by 31 March 2020. The free trial offering to new users ceased to be available on 31 March 2020.

TPG Singapore’s first paid plan was launched on 31 March 2020, and the number of new customers who had subscribed to that plan as at 30 April 2020 was approximately 7,000. Also on 31 March 2020, the first batch of approximately 186,000 free trial users were given 60 days’ notice that their free trial period was ending and similar notices will be given to the remaining free trial users over 2020. TPG Singapore expects that many free trial users will sign up to Tuas’s paid plan as their free trial periods progressively expire over the remainder of 2020. It is important to note that TPG Singapore is yet to generate significant revenue and should be viewed as an early stage business and a speculative investment.

 

[Dona Ferentes]

thought I'd have a look at Tuas, seeing Soul Patts (SOL) :
▪ received shares in Tuas Limited (prior to Vodafone/ TPG merger)
▪ WHSP is a 25.3% shareholder in TUA

One of 4 mobile providers in Singapore (8.76million subscribers mainly on 4G + some 3G)
Three simple products; online registration and instant activation:
i. SIM Only 50GB for S$10
ii. Prepaid 50GB for S$10
iii. Senior 20GB for S$5
Some 5G spectrum assigned.

- how long will it stay listed on ASX?

 

[Dona Ferentes]

thought I'd have a look at Tuas.

(but then I moved on.)

Tuas was bouncing along that 60c to 70c level for most of the year, then started to lift in Aug up towards $1.00 in September, with some big lines going through. Today, with the 2021 Results announced, there was a 30% kick and closed at $1.34

Tuas Limited (ASX: TUA) today released financial results for its inaugural financial year, covering the period from 11 March 2020 (being the date of incorporation of the company) to 31 July 2021.

Financially, the Singapore business achieved creditable results given the substantial challenges that the company and the community in Singapore faced during this time.
• Revenue grew month on month throughout the reporting period to S$34.3m, representing an increase of approximately $30m since the interim results published in October 2020.
• The Group reported an EBITDA loss for the full reporting period of S$2.5m.
• TPG Singapore, the operational business of the Group, achieved a positive EBITDA of S$0.9m for the 12 months to 31 July 2021, and has continued to track positively into the first quarter of FY22.

Subscriber growth was a key positive for the Company. ... In the interim report published in October 2020, TPG Singapore announced that it had 133,000 paid active subscriptions as at 4 September 2020. In the 11 months since that date, TPG Singapore tripled its subscriptions, to reach a total of 392,000 paid active subscriptions on 31 July 2021.

 

[Dona Ferentes]

....with the 2021 Results announced, there was a 30% kick and closed at $1.34...

and with buying interest continuing, ending higher for Wed & Thur closes. Today nudged $1.60 and currently $1.57

 

[barney]

and with buying interest continuing, ending higher for Wed & Thur closes. Today nudged $1.60 and currently $1.57

Up X3 in a couple of months DF ...... Nice when you can find 'em.

 

[divs4ever]

yes it seems my faith in David Teoh , is not a solo effort

i acquired some via the TPM restructure ( bought TPM @ $1.40 and later took out the investment cash risk ) and added some more TUA ( @ 47 cents ) after the demerger

now all we need is for TUA to start making a profit ( which i suspect will be used to penetrate the Malaysian market , and later the wider South East Asian markets )

more likely to be a 'growth stock ' near term than a div. payer , and although i love my divs. a little growth is not a bad thing

 

[Dona Ferentes]

SOL holds 25.3% of TUA and mentions it in their Annual Report:

Tuas owns the former TPG Singapore business. Tuas operates a low cost mobile network in Singapore. As a new entrant in the market, TPG Singapore is growing its customer base with products that deliver good value relative to incumbent service providers.

Tuas Limited is in the process of rolling out mobile infrastructure in Singapore. It launched commercial services at the end of March 2020 and by September 2020 secured 133,000 paid active subscribers. Full coverage has been reached in outdoor locations and road tunnels. Coverage of rail tunnels is expected to be completed by the end of 2021.

Also mentioned in the recent interview with SOL chair, Rob Millner:

Matthew Kidman
And now out of it, you're also a player in Singapore — probably the fourth at the moment?

Rob Millner
Yeah.

Matthew Kidman
It's becoming an international business; it keeps going.

Rob Millner
Well, David [Teo]'s a very smart operator and he had vision. He's Malay, so he knows that part of the world very well. And again, we're going to be the lowest cost producer up there, so we'll do well ......

......
Matthew Kidman
And Singapore, you have got a reasonably big holding in the (inaudible) investment company up there. David [Teo] is very excited about that.

Rob Millner
Yeah. Again, it has been difficult because he cant get up there to put his footprint on it a bit more, but we have got some very good people running it.
I usually go five or six times a year because we've got some other business interests up there. I'm looking forward to going up in February and having a look around and talking to the guys up there.

Matthew Kidman
They've started well, it looks like.

Rob Millner
Yeah. But again, we had to start from scratch, and I have got to be careful what I say here, but you're dealing with Singapore Inc up there, which is the Temaseks, and they haven't made it very easy for us.

 

[divs4ever]

i will be watching for the expansion , into Malaysia before it really starts gaining traction , but where after that , north towards Vietnam or west towards India/Pakistan , there are PLENTY of people in those areas and being lower cost might be a winning edge

HOWEVER tread carefully if TUA start planning it's own satellites ( that has proven to be a big trap elsewhere , it might trap them as well )

hopefully they will veer towards undersea cables , they have played there before with success

 

[Dona Ferentes]

i will be watching for the expansion, into Malaysia before it really starts gaining traction, but where after that , north towards Vietnam or west towards India/Pakistan ,
.. tread carefully if TUA start planning it's own satellites ... hopefully they will veer towards undersea cables , they have played there before with success

you must be well connected, but you omitted North Korea.

Mere mortals , aka shareholders. are privy only to this communication, from the Dec AGM

As shareholders know, the Group’s business is running a mobile telecommunications network in Singapore through TPG Singapore.

 

[divs4ever]

Denis Rodman is probably the best informed Westerner on North Korea ( and i am GUESSING Chinese Telcos will get the lions share of North Korea , unless it unifies with South Korea first but either way i don't see any edge in China/North Korea for TUA )

not that well connected to TPG ( TPM when i bought them)

but did some sub-contract work for several years back and liked what i saw ( mostly on the acquired Pipe Networks sites )

now sure David ( Teoh ) is ambitious but he does great results

but many years ago i was a member of a computer club and we got to talking networks/internet , now obviously we started with Australia ( pre-NBN ) but then when the discussion got to Asia ( without China but including PNG ) there were some interesting observations

fibre/cable v wireless v satellite networks and Asia with big population centres and really remote areas presented some challenges , especially if it is to be done cost efficiently

plenty of growth potential in TUA but there will be hard work needed , say over the next decade if they want a solid foothold in Malaysia ( and beyond )

 

[Dona Ferentes]

a high on yesterday's results. As a smaller Singapore telco, getting growth and margin lift...

SOL quite happy with their holding.

Outlook
• Expected mobile continued subscriber growth in 2H FY24.
• FY24 mobile and broadband CAPEX guidance of $45m to $50m.
• Targeting to achieve full year positive net cashflow.
• Focus on transition to 10Gbps fibre broadband offering and ramping up customer acquisition

 

[Rosscoe62]

TUA reported today with healthy results.

I’ve been waiting for these September 2024 results as a holder of this company since late 2023.

TUA has gone through a consolidation period but has rallied strongly today.

Currently up over 11% and moving …

Wide stops have kept me in play with this company since my entry.

5 year chart below, the company appears to be well managed and the chart speaks volumes of the company’s performance since it was floated back in late June 2020.

 

[Rosscoe62]

TUA going from strength to strength, another very strong upward momentum stock. There are plenty out there under these bullish conditions.

Bagging these and letting them run should be the goal of all traders. It won’t go on forever but enjoy the ride while it does …

6 monthly chart below demonstrating the gear changes the company has witnessed since reporting only a short while back.