Highlights
KLSE: TCHONG (4405)       TAN CHONG MOTOR HOLDINGS BHD MAIN : Consumer
Last Price Today's Change   Day's Range   Trading Volume
1.51   0.00 (0.00%)  0.00 - 0.00  0
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Overview

Market Cap: 1,015 Million
NOSH: 672 Million
Avg Volume (4 weeks):100,720
4 Weeks Range:1.50 - 1.65
4 Weeks Price Volatility (%):
91.52%
52 Weeks Range:1.50 - 1.95
52 Weeks Price Volatility (%):
77.44%
Average Price Target: 1.79
Price Target Upside/Downside: +0.28

Financial Highlight

Latest Quarter | Ann. Date 30-Jun-2017[#2]  |  25-Aug-2017
Next QR | Est. Ann. Date: 30-Sep-2017  |  28-Nov-2017
T4Q P/E | EY: -16.51  |  -6.06%
T4Q DY | Payout %: 1.28%  |  - %
T4Q NAPS | P/NAPS: 4.1957  |  0.36
T4Q NP Margin | ROE: -1.41%  |  -2.18%

Headlines

Date Subject
20-Oct-2017 Tan Chong Motor - Nissan Motor suspends production for a fortnight
28-Aug-2017 Tan Chong Motor - Sixth quarter with a core net loss
28-Aug-2017 Tan Chong Motor - 1H17 Below Expectations
28-Aug-2017 Tan Chong Motor Holdings - Misfortune Continues
28-Aug-2017 Mplus Market Pulse - 28 Aug 2017
28-Aug-2017 Tan Chong - Still In The Red
28-Aug-2017 Tan Chong Motor - Another Disappointing Drive
28-Aug-2017 Tan Chong Motor - Below Expectations
21-Aug-2017 Tan Chong - Hit With Injunctions And Lawsuits
21-Aug-2017 Mplus Market Pulse - 21 Aug 2017
21-Aug-2017 PublicInvest Research Headlines - 21 Aug 2017
16-May-2017 PublicInvest Research Headlines - 16 May 2017
16-May-2017 Mplus Market Pulse - 16 May 2017
05-May-2017 Tan Chong Motor - Weaker-than-expected Car Sales
05-May-2017 Tan Chong Motor - 1Q17 Below Expectations
05-May-2017 Tan Chong - Losses Widened
05-May-2017 Mplus Market Pulse - 5 May 2017
03-May-2017 Tan Chong Motor - Weak Car Sales in 1Q17
26-Mar-2017 拟增分销网络.陈唱摩多拓缅甸业务
20-Mar-2017 Mplus Market Pulse - 20 Mar 2017

Business Background

Tan Chong Motor Holdings Berhad is an investment holding company. Through its subsidiaries, the Company operates in three segments: Vehicles assembly, distribution and after sale services, which is engaged in the assembly and distribution of passenger and commercial vehicles, automotive workshop services, distribution of automotive spare parts and manufacturing of automotive parts; Financial services, which is engaged in the provision of hire purchase financing and personal loans and insurance agency, and Other operations, which include property and investment holding activities. During the year ended December 31, 2010, the Company acquired a new subsidiary, Nissan Vietnam Co. Ltd. The Company's subsidiaries include Agensi Pekerjaan Bijak Sdn. Bhd., Auto Components Manufacturers Sdn. Bhd., Auto Infiniti Sdn. Bhd., Auto Research and Development Sdn. Bhd., Autokita Sdn. Bhd., Ceranamas Sdn. Bhd., and Constant Knight (M) Sdn. Bhd.
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  KowChye likes this.
 
vicky168 Bought some at 1.72 yesterday, 1.68 is the lowest price since 2013. It will eventually go up once gain profit from overseas investment such as Vietnam & Myanmar etc...
22/02/2017 09:32
2721 rm keep drop, stil can up so many today lolz
09/03/2017 13:17
kuanhan79 Waiting for your turn to go up and break 2!
16/03/2017 13:39
alivetoinvest So many seller. SELLLLLLLLL
20/03/2017 16:06
ngyewchai76 Dim outlook
22/03/2017 08:04
alivetoinvest Tan Chong should launch the Nissan Note in Malaysia? That would be something exciting.
30/03/2017 17:41
Chua Zhi En can buy?
30/03/2017 23:36
08/04/2017 11:51
10/04/2017 17:08
GreenTrade It should go up soon.
22/04/2017 18:05
Lee Yih Yeong quarters result increase..congrat..
04/05/2017 18:25
Lee Yih Yeong ops..my mistake ..only increase yoy 5.07%
04/05/2017 18:29
RKLee What worry me is the sales. The sales seems like still being depressed.
05/05/2017 08:20
riskabsorber We believe the domestic automotive sector will remain challenging as consumer appetite is still weak with the strict financing approval guidelines in the current economic environment.

The Group will continue to remain disciplined and maintain our focus on key priorities to ensure
sustainable financial position. Sales and marketing activities will be enhanced to maintain our
competitiveness in Malaysia. Overseas sales and distribution are expected to continue expanding in tandem with the robust economic growth in Vietnam, Laos, Cambodia and Myanmar. However, as for Myanmar, its operations commenced production and sales activities in Q1 2017.

TChong has taken a smart move which is hedge the currency. Gain on derivative has helped them in this quarter result.
05/05/2017 10:42
davidkkw79 Losses still can be said increase.... = =
05/05/2017 13:28
kuanhan79 Useless counter unless you are willing to keep for years! At least, 3 years onwards...
05/05/2017 14:47
MsfollowmeTeam is making A come back 2
16/05/2017 22:52
chankp7010 From the above, we noted that there are many people with varied views as to whether to buy or sell TChong. As for me, I look at its management and Board, they are good and transparent, treating minority shareholders reasonably well. One such example is the privilege of being invited to TCM plant visit from 8.30 am. to 3.30 p.m. on 12 July 217. Thank you
07/06/2017 07:19
chankp7010 2017 July 12. Sorry for typo error
07/06/2017 07:20
nikicheong I got in at 1.82 on Thursday. Buying for long-term. At 0.42X B/V, this is considered cheap. If and when Tan Chong returns to profitability, it will eventually approach 1.0X B/V, and if the ROE can be sustained above 10% then it can possibly hit 1.2-1.4X B/V, which should mean at least a doubling or tripling of capital invested. The catch is...this may take 3-5 years to materialize. It's not a short game...it's a very long game indeed but with a good payoff potential.

Based on my risk analysis, I believe the downsides have been adequately priced in. I will top up more if the stock drops to 1.75, 1.68 etc (every 7 cents down) as long as the story hasn't changed. The few upside catalysts that will lead to a re-rating of the stock in the coming months and/or years are as follows:

1) New models launch. Tan Chong Motors has not brought in a single new model in 2017, and in 2016 they just brought in one or two minor facelifts. That means two new of almost zero updates, unlike its competitors such as Honda, Toyota and Mazda which have been actively launching brand new models here. In 2016, Tan Chong maintained that new models will be deferred to 2018. One highly rumored model is the Nissan Kicks, which should see good demand. The other is the Serena Hybrid facelift, also said to be highly sought after.
11/06/2017 10:54
nikicheong 3) Stabilizing/strengthening Ringgit. In Q1 17, the Ringgit averaged RM4.43/USD, but in Q2 this has dropped to about RM4.35. This arguably means that the worst is over for the Ringgit as far as the FX with USD and JPY is concerned, and going forward there may even be a slight upwards/bullish bias for the Ringgit. Not to mention, Tan Chong would have been renegotiating cost of parts/models with Nissan Corp., which should also boost the bottomline.

4) Possibly taking over Mitsubishi distribution in Malaysia. Nissan bought a ~35% stake in Mitsubishi Motors in Japan last October. Now the entire group comprises of Renault-Nissan-Mitsubishi. Tan Chong already distributes the former two in Malaysia, so its entirely possible they will take a stake in distributing Mitsubishi cars here to streamline operations and reduce costs for the R-N-M group.

5) Low base effect. Q1 2017 saw a very small volume of Nissan cars sold in Malaysia. Their marketshare was among the lowest seen in the past 5 years. Things have recovered in the following months. Inventories have been falling these past few quarters. When we get to next year, there will be a favorable bias when doing YoY comparisons due to the low base effect.
11/06/2017 10:56
nikicheong 2) Refers to Indochina growth. But i3 keeps deleting the comment. Why can't I post it? I don't even use any vurgar words or talk about politics. Can't share as it keeps getting removed, sorry.
11/06/2017 10:59
Jon Choivo Niki, im looking as well. But you're banking alot on hope and dreams when they are so many other companies out there that is doing well already and not fully priced in yet.

If im right, with the level of debts in australia, us, china, malaysia etc. We should be in for a recession soon. Whatever gains we have in the malaysian economy now is not due to real fundamentals, but because people feel optimistic and buy, and when people see people buy, they buy as well.

A recession is coming, debt levels is way higher than 2008. And when it comes, your turnaround play might take a very long time.
12/06/2017 01:23
nikicheong In that sense I disagree. It's not my job to predict a recession. Just buy and hold companies that WILL see a turnaround in a five year period. I do believe that Tchong fits the bill well.

Just my 2 cents. By the way if you ask me, I believe Malaysia's fundamentals will improve over the coming 3 years. 2017 Q1 GDP growth shows that we are in the beginning of such a process.

What other companies would you consider to be "safe" no-brainer investments for gains in a five year period? I believe Prlexus is one of them, Hevea is another. But I'm spreading my risk exposure in buying both "beaten down/fallen giants" and buying companies with "growth at reasonable price" such as Heveaboard. Both of course following the margin of safety concept, where you primary aim is to NOT lose money, rather than make money.
12/06/2017 13:15
enid888 Nikicheong, what is the growth story in Indochina that you want to talk abt? How abt their new model launching in Malaysia? I do not see any new model launched thus far this year.
30/06/2017 00:52
nikicheong Enid888, this is why these are UPSIDE POTENTIAL. You have to anticipate them. If you wait for it to be in the news, the share price would have reacted already.

Now, these are not a given. Which is why you must also do a risk analysis and establish a sufficient margin of safety.
05/07/2017 20:44
nikicheong Link: http://www.thestar.com.my/business/business-news/2017/07/07/ram-tan-chong-motor-losses-to-persist-before-recovering-in-2018/

RAM downgrades Tan Chong outlook to negative, but reaffirm P1/A1 bond and corporate ratings.

Will be interesting if this results in a small sell-off on Monday. Anything below RM1.70 will be a nice buying opportunity and to top up for me (initial entry at RM1.82). Turnaround is not far off now, with a company like Tan Chong and its Nissan connections, it is hard to go wrong!
08/07/2017 13:31
nikicheong What a shame, not one soul sold yesterday! :(
11/07/2017 13:17
geng59 What's up with key directors buying for past few days but shares keep trending down? Appreciate some thoughts in this. Thanks
19/07/2017 10:29
Cornerstone hopeless stock...
19/07/2017 10:51
nikicheong "It is the darkest before dawn".

I got in at RM1.82...anyone who can buy in at RM1.75 should be even luckier!

It is in the deepest pits of hopelessness that hope emerges once more.

If you have studied Graham, Buffet and Lynch, then you know that this is a stock that screams "BUY". Of course, provided you have a long investment horizon and the patience and fortitude to believe in your picks.
19/07/2017 22:08
thinkndo Howerver, be alert...noticing that since end of 2014, has broken below RM4. Then after, achieving the lowest in every year. Hope this round is different and not going to repeat the same pattern..Huh.
20/07/2017 16:48
Lau Choong Ling If china cars not florish in Malaysia, possible
27/07/2017 13:12
nikicheong We might be headed into the RM1.50s soon...

Quarter report not pretty, but the substantial decline in inventories is a major positive.
25/08/2017 23:02
Ohyea Lol better buy media prima since both also fallin .. media got status quo .... tan chong on his own ... if Tey fail to boost the sales ... sooner later Nissan revoke their distribution rights ... then u all go Holland d
04/10/2017 08:12
Ohyea http://www.straitstimes.com/business/companies-markets/nissan-suspected-of-routinely-forging-inspection-documents-reports
05/10/2017 07:46
nikicheong Got more today @1.61. So I bought at 1.82, then 1.70, then 1.61. Avg price ~1.69.

Will keep topping up if it drops to the low 1.50s.
01/11/2017 20:54
Victor Yong grabcar & tan chong are expanding in ASEAN, grabcar and tan chong have great synergy. Nissan is also progressive in electrical/hybrid cars e.g. leaf. Nissan ranks no 2 in Japan. once tan chong introduces new Nissan model like honda, etc, the sale volume will rebound . :)
02/11/2017 10:16
Victor Yong possible for grabcar to acquire a stake tan chong as grabcar could offer new/old nissan cars, etc to grab drivers? :)
02/11/2017 10:23
Victor Yong South-East Asian ride-hailing platform Grab, the company co-founded by Anthony Tan who is from the family that built up the Tan Chong Motor group, is making a big bet on the Indonesian market with an investment of US$700mil over the next four years.

Indonesia is Grab’s largest market in South-East Asia, with its GrabCar and GrabBike businesses each growing more than 600% in 2016.

The investment under the company’s “Grab 4 Indonesia” 2020 master plan will see its services expand across more cities than any of its competitors, including Jakarta, Bali, Bandung, Padang, Makassar, Medan, Surabaya and Yogyakarta.

The master plan, designed to support Indonesia’s goal of becoming the region’s largest digital economy by 2020, includes the opening of a Grab research and development (R&D) centre in Jakarta.

The company also plans to launch a social impact fund to invest in local companies and improve access to mobile payments and financing opportunities across Indonesia, it said yesterday.

Anthony, who is group CEO and co-founder of Grab, is the son of Tan Chong Motor Holdings Bhd
image: https://cdn.thestar.com.my/Themes/img/chart.png

president Tan Heng Chew. His grandfather, Tan Sri Tan Yuet Foh, co-founded the Tan Chong group into a leading automotive company in the region.

“As the largest homegrown technology start-up in South-East Asia, we are excited to make this significant investment in Indonesia’s future and accelerate their transition to a fully integrated digital economy.

“The ‘Grab 4 Indonesia’ 2020 master plan underlines our deep commitment to driving South-East Asia forward, and our excitement about the tremendous opportunities we see in Indonesia to help build and advance the country’s digital infrastructure and ecosystem,” Anthony said in a statement yesterday.

The master plan involves three major investment pillars, which are technology talent, technopreneurship, and mobile payments.

To create new jobs in information technology and upskill the country’s human capital, Grab aims to hire 150 engineers over the next two years for a new R&D centre in Jakarta.

The company said the centre would focus on developing country-specific innovations, including algorithms to address new road regulations in Jakarta and GrabHitch (Nebeng), a “bike-pooling” service that caters to almost 1.4 million commuters in greater Jakarta.

Indonesian engineers will also be provided with training opportunities at Grab’s existing R&D centres in Singapore, Beijing and Seattle.

The company also plans to pump US$100mil into local start-ups and aspiring technopreneurs through a “Grab 4 Indonesia” social impact investment fund.

It said the fund would focus on companies involved in the mobile and financial services industries, particularly those which serve smaller cities and communities which have yet to benefit from the digital economy.

To increase access to mobile payments and financing opportunities, the company will expand its mobile payment solutions in Indonesia through its cashless stored value option, GrabPay Credits, and existing partnerships with Mandiri and their e-Cash solution, it said.

“In addition, Grab will provide its driver partners with access to more financing opportunities to purchase their own smartphones and automotive vehicles, giving them the opportunity to build sustainable livelihoods and become micro-entrepreneurs,” it said.

To date, Grab has generated over US$260mil in income for its driver partners in Indonesia.

Bloomberg quoted Grab president Ming Maa as saying that the bulk of the investment into Indonesia will come from Grab’s fund-raising exercise last year, during which the company collected a record US$750mil from backers led by SoftBank Group Corp.

Ming Maa said there were no plans for a new financing round, but expects the company to exceed the estimated US$700mil investment figure “very quickly”.

Grab is currently estimated to be valued at more than US$3bil.
02/11/2017 10:32
Victor Yong https://paultan.org/2017/09/06/new-nissan-leaf-confirmed-for-2018-malaysian-launch/
02/11/2017 11:15
Victor Yong once announced, auto stocks will rise :)
A policy for the maximum permissible lifespan of vehicles in Malaysia has been in the works, and the study towards that is now at its final stage, according to a Bernama report. A proposal to incentivise owners of older vehicles to change those for newer ones is included as part of the study, which must be presented to Cabinet before its tabling in Parliament.
02/11/2017 11:30
Victor Yong https://paultan.org/2017/10/30/study-for-vehicle-end-of-life-policy-at-final-stage-liow/
02/11/2017 11:31
nikicheong Victor, calm down.

1) Grab and Tan Chong are wholly unrelated. This has been said many times. Don't dream of anything happening.

2) Nissan Leaf is still too expensive. Do not expect any appreciable contribution from there.

However, look at this: https://paultan.org/2017/10/27/spied-2018-nissan-serena-seen-testing-in-malaysia/

Tan Chong needs to launch new models for Serena, X-Trail, Teana, Almera and Livina. This is where the high level impact will come from!
02/11/2017 13:34
Victor Yong Nikki, yup. launch something like juke to compete with honda hrv, etc. Nissan offers good customer services at service centres. if they have the right products, I would buy :)
02/11/2017 19:03
Victor Yong tchong's net asset per share is almost 3 times the current share price. any chance for privatisation and relisting later e.g. astro, etc? :)
03/11/2017 13:37
nikicheong Not likely to be privatized, since Tan Chong does have major debt. Even then the credit rating is strong, since Tan Chong is publicly listed. If it is wanted to be taken private, the banks won't be too happy. Also Tan Chong's ownership is fragmented and no longer concentrated in a single person's hands (the family got many feuds, so hard to combine and get a controlling stake). Unlike Astro, which was mainly owned by one man and wasn't swimming in debt so relatively easy to take private then re-IPO when the market recovers.

In short, almost zero chance of being taken private or delisted. We are at the very bottom, if not darn near to it (~10% from the bottom). I.e. I see the absolute bottom being at ~RM1.42. Good buy!
09/11/2017 23:33
DualShock The challenges of Tan Chong seems something to do with Nissan Brand..
Slow model update.. Look at new Mazda CX 5, and hot New Produa MYVi..
Don't talk about upcoming model from UMW - Toyota new Camry & C-HR

Nissan model look very uncle and super outdated already..
How to attract younger market..
20/11/2017 11:11
nikicheong @DualShock, I have already spoken about the reason for the slow model update. Look at my posts from before.

At these prices and valuation...close eye and buy lah. Sure double, possibly 4x, maybe even 6x upwards in a 5 year period. Tan Chong isn't going anywhere.
22/11/2017 21:23
DualShock @nikicheong you must be joking close eye 4x - 6x..
You must be tempted with Tan Chong BV valuation..
But Tan Chong no longer can make high margin in its biz segment..
5 yr period with same bottom line performance will just continue...

Only take over bid can change the Shareholder faith..
22/11/2017 23:52


 

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