KUALA LUMPUR: CIMB Equities Research has upgraded its outlook for TAN CHONG MOTOR HOLDINGS BHD [] and rated it as an outperform and its top pick in the auto sector.
It said on Friday, April 9 that its sum-of-parts based target price is pushed from RM4.55 to RM7.
CIMB Research said this is an excellent entry point to ride on the following major themes for Tan Chong over the next three years.
The factors are strong earnings growth trajectory; model mix expansion, and regional ambitions and Indochina strategy.
“We are now projecting an impressive EPS CAGR of 47% as our FY10-12 earnings are raised 38-62% after 1) upping our sales volume forecasts by 5-13%, and 2) raising operating margins by 1-2 percentage points for a stronger ringgit, better product mix and economies of scale,” it said.
About Me
- Nuang
- Ibrahim bin Ramli@Nuang started his career with CIMB Wealth Advisors Berhad as Agency Manager in April, 2008.Previously he was an Internal Auditors and Accounts Executive with Perodua Sales Sdn Bhd since 17 August, 1994. His background:- 1.Certified of Achievement for Master Sales Leadership from Dr Lawrence Walter Ng of President of The Art Of Learning and International Of Learning Without Learning 2.Certified for eXtra Ordinary Performance of Lawrence Walter Award Certificate for One Million Ringgit Club 2007 3. Certified Life & General insurances 4. Conferred with Diploma in Business Studiess & Bachelor of Business Admin(Hons)Finance from UiTM, Terengganu Branch & Shah Alam respectively;
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