Post Reply
41-51 of 51
FromDBS research:
Maintain BUY, and S$1.30 target price. We maintain our BUY rating for Tat Hong, which offers investors a proxy on demand for heavy equipment in the Asia Pacific region. This is based on comparable peers valuation multiples.
We maintain our BUY rating for Tat Hong, which offers investors a proxy on demand for heavy equipment in the Asia Pacific region. This is based on comparable peers valuation multiples.
Tat Hong Holdings Ltd: Uptrend remains intact
Summary: Tat Hong's (THH) revenue dipped 3% YoY to S$105.1m in 2Q07, as its crane rental (+21% YoY) and spare parts (+16%) business failed to stem lower volume for equipment sales (-3%) and lower general equipment rental (-26%). Net profit pulled itself barely 1% YoY higher to S$9.3m in 2Q07, and rose 18% YoY to S$19.7m in 1H07. THH's performance in 2Q07 was dragged down by the disappointing set of results from its Australia-listed subsidiary Tutt Bryant Group Ltd (TBG). TBG now expects A$4.8m net profit in 1H07, after the high staff turnover resulted in discontinuity and cost overrun in some projects. TBG has since taken remedial actions, and is now guiding for A$10-A$11m net profit in FY07. We believe that the positive business prospect for THH has remained intact, and its weak 2Q07 performance is a hiccup. As such, there is no change to our FY07 and FY08 net profit estimates of S$42.1m and S$49.0m, respectively. Due to the proximity to financial year ended March 2007, we have raised fair value estimate to S$1.42 (vs. S$1.31 previously) on the back of FY07/08 EPS (vs. FY07 EPS previously), keeping a similar 14x forward PER. We maintain BUY rating on THH. (Chong Wee Lee)
Summary: Tat Hong's (THH) revenue dipped 3% YoY to S$105.1m in 2Q07, as its crane rental (+21% YoY) and spare parts (+16%) business failed to stem lower volume for equipment sales (-3%) and lower general equipment rental (-26%). Net profit pulled itself barely 1% YoY higher to S$9.3m in 2Q07, and rose 18% YoY to S$19.7m in 1H07. THH's performance in 2Q07 was dragged down by the disappointing set of results from its Australia-listed subsidiary Tutt Bryant Group Ltd (TBG). TBG now expects A$4.8m net profit in 1H07, after the high staff turnover resulted in discontinuity and cost overrun in some projects. TBG has since taken remedial actions, and is now guiding for A$10-A$11m net profit in FY07. We believe that the positive business prospect for THH has remained intact, and its weak 2Q07 performance is a hiccup. As such, there is no change to our FY07 and FY08 net profit estimates of S$42.1m and S$49.0m, respectively. Due to the proximity to financial year ended March 2007, we have raised fair value estimate to S$1.42 (vs. S$1.31 previously) on the back of FY07/08 EPS (vs. FY07 EPS previously), keeping a similar 14x forward PER. We maintain BUY rating on THH. (Chong Wee Lee)
Credit Suisse said that Tat Hong was likely to supply many of the cranes required for construction projects here, especially with some, such as the Marina Bay Sands casino resort, requiring 60 cranes or more.
"We believe that no other crane provider in Singapore can provide cranes on that scale," Credit Suisse said.
target price 1.30.
Tat Hong will also capitalise on the active energy resources sectors in Malaysia and Australia.
Good results, with many houses calling a buy or outperform, target price of 1.31. yet today's movement is lethagic.
results out today ??
all the right moves and no risky business ? 2 movies in 1 ?
why daniel XX ? not triple X ?
You can catch a hint by watching the performance of its 70%-subsidiary Tutt Bryant on the ASX: it has been moving steadily up, by about 50%, since its IPO last year.
In terms of positioning, it has exposure to all the right regions (Australia, Middle East, South-east Asia) and all the right sectors (infrastructure, mining, construction). Do not let go.
anyone can offer some views on direction of this stock...thanks