Bursa Malaysia Stock Watch

Tan Chong Motor: Maintain Sell - Assembly agreement with TC Subaru

kltrader
Publish date: Wed, 07 Mar 2012, 08:59 AM
kltrader
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Good for plant utilisation but Neutral to earnings. TCM's contract assembly works for the Subaru marque, catering for the ASEAN market, will lift its Segambut plant utilisation from 2013 onwards but will only contribute marginally to earnings, we estimate. Maintain Sell, with an unchanged TP of 4.00, based on 8x 2013 PER.

Maybank Research 7 March 2012

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