Stock Name: Tat Hong
Company Name: TAT HONG HOLDINGS LTD
OCBC keeps Tat Hong Holdings (T03.SG) at Buy with unchanged $1.75 fair value estimate after the company reported revenue and net profit of $837 million (up 16%) and $70 million (up 67%) respectively for FY13. The house notes that Tat Hong's gross profit margin improved to 37.6% for FY13 vs 36.5% in FY12 due to greater contribution from the higher margin crane rental and tower crane businesses. "The outlook for its key markets remains positive, underpinned by a number of infrastructure projects. However, management believes it is time to slow down its fleet expansion, after a 79% surge in fleet tonnage in the past 5 years," OCBC says. Looking ahead, the house expects the company to focus on raising its crane productivity, and reducing operating costs through the use of its new yard in Iskandar. The stock is recently +0.7% at $1.52.
Company Name: TAT HONG HOLDINGS LTD
| Research House: OCBC | Price Call: BUY | Target Price: 1.75 |
OCBC keeps Tat Hong Holdings (T03.SG) at Buy with unchanged $1.75 fair value estimate after the company reported revenue and net profit of $837 million (up 16%) and $70 million (up 67%) respectively for FY13. The house notes that Tat Hong's gross profit margin improved to 37.6% for FY13 vs 36.5% in FY12 due to greater contribution from the higher margin crane rental and tower crane businesses. "The outlook for its key markets remains positive, underpinned by a number of infrastructure projects. However, management believes it is time to slow down its fleet expansion, after a 79% surge in fleet tonnage in the past 5 years," OCBC says. Looking ahead, the house expects the company to focus on raising its crane productivity, and reducing operating costs through the use of its new yard in Iskandar. The stock is recently +0.7% at $1.52.
No comments:
Post a Comment