2 biggest reasons behind Tat Hong's low cranes utilisation

Utilisation rate dropped to 68.1%.

According to CIMB, it is not alarmed by the drop in the utilisation (to 68.1%) of TAT’s crawler/mobile-crane division in 4QFY13. There were two reasons for that.

First, delays in the redeployment of its fleet in Thailand from late Mar to  Apr/May. The delays were caused by timing of projects commencement. 

Second, TAT had actually eliminated lorry cranes from this segment in FY13, which resulted in perceived lower utilisation rates. Like-for-like, its optimised utilisation rate was still a respectable low 70+%.

Here's more:

That said, we lower our blended utilisation assumptions for this division from 75% to 72% for FY14 to be more prudent. Without another increase in its fleet and tonnage, maximum utilisation for this division is 80%-85%. Current utilisation of 68% suggests enough headroom for growth, before further deployment of fleet.