Stock Name: Tat Hong
Company Name: TAT HONG HOLDINGS LTD
OCBC Investment Research in a June 23 research report says: "Standard and Poor's (S&P) recently cut its outlook for China's real estate development sector from "stable" to "negative", citing increased pressures on inventory and sales.
"Any slowdown in the construction / infrastructure industry could also affect heavy equipment suppliers like Tat Hong Holdings. However, any impact on Tat Hong is likely to be limited, given that the contribution from China is still small.
"In any case, we have already factored in slower growth for its heavy tower crane business in China; we further believe that any sharp contraction looks unlikely as the government remains committed to improving the nation's infrastructure. Fair value estimate of 82 cents, based on 11x forward EPS. MAINTAIN HOLD."
Company Name: TAT HONG HOLDINGS LTD
| Research House: OCBC | Price Call: HOLD | Target Price: 0.82 |
OCBC Investment Research in a June 23 research report says: "Standard and Poor's (S&P) recently cut its outlook for China's real estate development sector from "stable" to "negative", citing increased pressures on inventory and sales.
"Any slowdown in the construction / infrastructure industry could also affect heavy equipment suppliers like Tat Hong Holdings. However, any impact on Tat Hong is likely to be limited, given that the contribution from China is still small.
"In any case, we have already factored in slower growth for its heavy tower crane business in China; we further believe that any sharp contraction looks unlikely as the government remains committed to improving the nation's infrastructure. Fair value estimate of 82 cents, based on 11x forward EPS. MAINTAIN HOLD."
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