December 21, 2011

Tanjung Offshore (Sell): Disappointment ahead

Stock Name: TGOFFS
Company Name: TANJUNG OFFSHORE BHD
Research House: MAYBANKPrice Call: SELLTarget Price: 0.70



Downgrade to Sell, TP cut to RM0.70 (-14%, to 0.6x PBV), ahead of a disappointing 4Q results, hit by a confluence of issues at its engineering equipment division. For this, we forecast TOFF to end 2011 with a higher net loss of RM14m, making consensus and our initial estimates untenable. The stock is unlikely to re-rate until the company shows tangible signs of managing costs effectively.


Maybank research (21 December 2011)

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