Stock Name: Tat Hong
Company Name: TAT HONG HOLDINGS LTD
OCBC Investment Research in an Oct 7 research report says: "We suspect it may take some time before we see a recovery in Australia's construction sector. As the country is a key market for Tat Hong Holdings (TAT) and accounted for more than half of the group's revenue (FY10: 59%; FY11: 54%), delays in its recovery could have a substantial impact on TAT's near-term financial performance.
"Due to the lack of clarity in Australia's construction outlook and the uncertainty in the timing of its recovery, we put off adjusting our estimates for now and await clearer signs of a recovery.
"However, we are lowering our valuation peg from 11x to 9x (one standard deviation below its long-term average) on blended FY12/FY13 EPS, in line with the weaker overall market. Lower fair value estimate of 59 cents. MAINTAIN HOLD."
Company Name: TAT HONG HOLDINGS LTD
| Research House: OCBC | Price Call: HOLD | Target Price: 0.59 |
OCBC Investment Research in an Oct 7 research report says: "We suspect it may take some time before we see a recovery in Australia's construction sector. As the country is a key market for Tat Hong Holdings (TAT) and accounted for more than half of the group's revenue (FY10: 59%; FY11: 54%), delays in its recovery could have a substantial impact on TAT's near-term financial performance.
"Due to the lack of clarity in Australia's construction outlook and the uncertainty in the timing of its recovery, we put off adjusting our estimates for now and await clearer signs of a recovery.
"However, we are lowering our valuation peg from 11x to 9x (one standard deviation below its long-term average) on blended FY12/FY13 EPS, in line with the weaker overall market. Lower fair value estimate of 59 cents. MAINTAIN HOLD."
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