Stock Name: TANJONG
Company Name: TANJONG PUBLIC LIMITED COMPANY
Research House: CIMB
KUALA LUMPUR: CIMB Equities Research maintains its Outperform recommendation on Tanjong plc as the stock may be catalysed. The research house said on Friday, March 26 the factors are if it gets a replacement numbers forecast operations (NFO) game, ii) Tropical Islands makes a sustainable turnaround earlier-than-expected, iii) Tanjong lines up M&As, or iv) lists its power arm in the medium term. The report was issued after Tanjong's first ever post-results conference call, which were mostly negative. CIMB Equities Research said the points raised were there may be a cash call to fund large-scale M&As, ii) RTO losses are likely to rise 15% in FY11, and iii) there are unlikely to be any power unlocking efforts, at least not over the next few months. The main bright spot was management's commitment to a progressive dividend policy, which supports our projected gross dividend yields of 5-7%. CIMB Equities Research said after factoring in wider RTO losses, it trimmed its FY11-13 core earnings by 1-2%, which clips 5 sen off our end-CY10 target price, taking it to RM21.05, still based on a 10% SOP discount. "Despite the negative tone of the conference call, we continue to rate Tanjong an Outperform," it said.
Company Name: TANJONG PUBLIC LIMITED COMPANY
Research House: CIMB
KUALA LUMPUR: CIMB Equities Research maintains its Outperform recommendation on Tanjong plc as the stock may be catalysed. The research house said on Friday, March 26 the factors are if it gets a replacement numbers forecast operations (NFO) game, ii) Tropical Islands makes a sustainable turnaround earlier-than-expected, iii) Tanjong lines up M&As, or iv) lists its power arm in the medium term. The report was issued after Tanjong's first ever post-results conference call, which were mostly negative. CIMB Equities Research said the points raised were there may be a cash call to fund large-scale M&As, ii) RTO losses are likely to rise 15% in FY11, and iii) there are unlikely to be any power unlocking efforts, at least not over the next few months. The main bright spot was management's commitment to a progressive dividend policy, which supports our projected gross dividend yields of 5-7%. CIMB Equities Research said after factoring in wider RTO losses, it trimmed its FY11-13 core earnings by 1-2%, which clips 5 sen off our end-CY10 target price, taking it to RM21.05, still based on a 10% SOP discount. "Despite the negative tone of the conference call, we continue to rate Tanjong an Outperform," it said.
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