Stock Name: TCHONG
Company Name: TAN CHONG MOTOR HOLDINGS BHD
Research House: OSK



Tan Chong Motor Holdings (TCM) will see a favourable fourth quarter following mixed sales, expecially a volume and margin boost, from the launch of the all-new Nissan Teana tommorow, says OSK Research.

To date, 1,500 units of the Teana have been confirmed.

"We continue to remain optimistic of TCM's prospects and see a positive growth in volume and earnings," it said in its research note today.

TCM's net profit for the third quarter ended Sept 30, grew 43 per cent to RM49.34 million from RM34.43mil in the previous corresponding period while revenue increased 17 per cent to RM871.6mil from RM745.77mil previously.

Going into next year, TCM remains committed in bringing in two new CKD models along with three new CBUs.

"As the TCM plants in both Vietnam and Kota Kinabalu, which would produce a CKD Navara, are also expected to be operational by then, we remain bullish on the company's outlook.

"In Sabah, TCM is expected to post commendable margins by taking advantage of Indonesia's lower effective excise duty and tax rate of 20 per cent on its pick-ups and the higher selling prices there," OSK said.-- Bernama