Stock Name: Tat Hong
Company Name: TAT HONG HOLDINGS LTD
OCBC Investment Research in a Jan 9 research report says: "The group is seeing some improvements in its Australian business and remains optimistic that it will do better in this financial year (ended March 2012), compared with the previous year.
"We think that a recovery in the Australian business would provide a strong boost to the group as the country accounts for over half of its total revenue. Besides Australia, it is also active in Hong Kong, Malaysia and Indonesia markets.
"We increased our projected utilization rates and gross margins for the next few quarters by 2-5%, which in-turn raised our FY2013 EPS by 13-45% (Note that Tat Hong's net profit is highly sensitive to utilization rate changes). Fair value estimate of $1.09 (previously 70 cents), still on 9x FY2013F EPS. UPGRADE TO BUY."
Company Name: TAT HONG HOLDINGS LTD
| Research House: OCBC | Price Call: BUY | Target Price: 1.09 |
OCBC Investment Research in a Jan 9 research report says: "The group is seeing some improvements in its Australian business and remains optimistic that it will do better in this financial year (ended March 2012), compared with the previous year.
"We think that a recovery in the Australian business would provide a strong boost to the group as the country accounts for over half of its total revenue. Besides Australia, it is also active in Hong Kong, Malaysia and Indonesia markets.
"We increased our projected utilization rates and gross margins for the next few quarters by 2-5%, which in-turn raised our FY2013 EPS by 13-45% (Note that Tat Hong's net profit is highly sensitive to utilization rate changes). Fair value estimate of $1.09 (previously 70 cents), still on 9x FY2013F EPS. UPGRADE TO BUY."
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