Tan Chong?s share price has rallied strongly over the past few weeks. We are taking a relook at our volume assumptions along with other key indicators that could further propel its earnings over the next 3 years. In tandem with management guidance of better volume, we have collectively raised our volume forecasts by 2% and 16% respectively for FY10 and FY11. Also given the stronger ringgit, we are raising our bottom-line assumptions by 14.4% and 19% respectively. This bumps up our TP to RM5.73 from RM4.51, with our BUY call retained, for a 22% upside.