May 19, 2011

TCHONG - Tan Chong climbs on positive 1Q results

Stock Name: TCHONG
Company Name: TAN CHONG MOTOR HOLDINGS BHD
Research House: MIDF

KUALA LUMPUR: TAN CHONG MOTOR HOLDINGS BHD []'s ''shares rose on Thursday, May 19 after its net profit rose 14.5% to RM74.08 million in the first quarter ended March 31, 2011 from RM64.67 million a year ago, boosted by the sale of its Nissan Teana.

At 9.45am, Tan Chong was up eight sen to RM4.38 with 1,000 shares traded.

Revenue increased by 29.8% to a record high of RM1.13 billion from RM870.36 million. Earnings per share were 11.35 sen from 9.91 sen a year ago.

MIDF Research maintained its Neutral recommendation on Tan Chong with fair value RM4.94 given the weak sentiment towards the automotive sector due to concerns over auto supply shortages.

'Nonetheless, we are still positive on Tan Chong's aggressive regional market expansion which is still on track,' it said on May 19.

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