Maintain Sell. TOFF's move to shut down Citech and take a heavy hit in 4Q11 will be painful in the short term but operationally positive in the longer term as the Group takes constructive steps to restructure its businesses. We think it will address its troubled engineering equipment division next. While we laud these efforts, we are maintaining our Sell call on concerns over its high gearing and the probability of further impairments. Last Friday's spike in share price (+10%) is fundamentally unwarranted in our view, and is an opportunity to exit.

Maybank Research 13 Feb 2012

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