Friday 29 Mar 2024
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KUALA LUMPUR (May 21): Tan Chong Motor Holdings Bhd (TCM) jumped 7.78% at noon today after it reported a net profit of RM4.25 million for its first quarter ended March 31, 2018, from a net loss of RM35.32 million in the corresponding period last year, owing to reduced net debt.

At 12.30pm, TCM rose 13 sen to RM1.80 with 152,800 shares done.

TCM’s revenue improved by 4% to RM1.03 billion, from RM995.65 million previously.

Looking ahead, the group expects the automotive sector to remain challenging in a highly competitive market.

Meanwhile, Hong Leong IB Research TCM to “Buy” at RM1.67 with a higher target price of RM2.15 and said TCM reported 1Q18 core net profit RM14.0 million, above house expectation and consensus.

In a note today, the research house said the improvement was driven by better than expected margin as a result from favourable RM position against US dollar, lower marketing expenses and improved sales mix.

“We make upward revision for FY18 and FY19 to RM41.7 million and RM69.5 million and introduce FY20 core net profit of RM94.1 million.

“We upgrade our recommendation to Buy with higher target price of RM2.15 based on 0.5x P/NAV,” it said.

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