Stock Name: TCHONG
Company Name: TAN CHONG MOTOR HOLDINGS BHD
Prolonged supply shortages and higher costs from its regional expansion put Tan Chong in a jam in FY11. While the worst is over, there are still roadblocks ahead in the form of cost pressure and tighter credit. FY11 core net profit undershot our and consensus numbers by 14-16% due to losses from Nissan Vietnam (NVL) and higher costs from Tan Chong's domestic and regional expansion. We cut our FY12-13 EPS projections and SOP based target price to RM4.35 from RM4.60. Maintain Hold.
Source: CIMB Trader AM - 27th Feb 2012
Company Name: TAN CHONG MOTOR HOLDINGS BHD
| Research House: CIMB | Price Call: HOLD | Target Price: 4.35 |
Prolonged supply shortages and higher costs from its regional expansion put Tan Chong in a jam in FY11. While the worst is over, there are still roadblocks ahead in the form of cost pressure and tighter credit. FY11 core net profit undershot our and consensus numbers by 14-16% due to losses from Nissan Vietnam (NVL) and higher costs from Tan Chong's domestic and regional expansion. We cut our FY12-13 EPS projections and SOP based target price to RM4.35 from RM4.60. Maintain Hold.
Source: CIMB Trader AM - 27th Feb 2012
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