Stock Name: Tat Hong
Company Name: TAT HONG HOLDINGS LTD
CIMB in a Feb 15 research report says: "3Q12 core earnings were above consensus and made up 37% of our previous FY2012 forecast, with 9M12 at 85%. Revenue growth was seen across all business divisions, resulting in an overall increase of gross profit to $67.5 million (+43% y-o-y) in 3QFY12.
"Overall, margins for all divisions remained tight despite keen competition. Gross margin stayed at a respectable 34.4%. Core profit of S$14.7m (+121% y-o-y) also confirmed the superb reversal of fortune for this group. Notwithstanding the one-off damage to the now concluded JV saga in the PRC, we see the strong Australian operations driving a sustainable growth momentum.
"We raise our FY2012-2014 numbers and target price of $1.01 (still at 10x CY13 P/E) on better operating efficiencies. OUTPERFORM."
Company Name: TAT HONG HOLDINGS LTD
| Research House: CIMB | Price Call: BUY | Target Price: 1.01 |
CIMB in a Feb 15 research report says: "3Q12 core earnings were above consensus and made up 37% of our previous FY2012 forecast, with 9M12 at 85%. Revenue growth was seen across all business divisions, resulting in an overall increase of gross profit to $67.5 million (+43% y-o-y) in 3QFY12.
"Overall, margins for all divisions remained tight despite keen competition. Gross margin stayed at a respectable 34.4%. Core profit of S$14.7m (+121% y-o-y) also confirmed the superb reversal of fortune for this group. Notwithstanding the one-off damage to the now concluded JV saga in the PRC, we see the strong Australian operations driving a sustainable growth momentum.
"We raise our FY2012-2014 numbers and target price of $1.01 (still at 10x CY13 P/E) on better operating efficiencies. OUTPERFORM."
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