KUALA LUMPUR(Nov 19): Tan Chong Motor Holdings Bhd saw its share price increase as much as 10 sen, or 3.5% to RM2.98  this morning as the group posted a stellar set of results for its third quarter ended Sep 30, 2015 (3QFY15).

Its 3QFY15 net profit rose more than fifteen times to RM28.18 million or 4.47 sen per share from RM1.87 million or 0.29 sen per share a year ago due to significant increase in operating profit.

Revenue for the quarter climbed 19.13% to RM1.37 billion from RM1.15 billion in 3QFY14, due to better performance across all business segments.

In a note today, MIDF Research said that 4QFY15 will be critical for Tan Chong as it will reflect a 11% quarter on quarter spike in the USD/RM rates to an average 4.05, while current spot rates stands at 4.4.

“Every 1% change in our USD assumption (of 4.00) impacts FY16 forecasted earnings by as much as 31% given already thin underlying margins, “ said MIDF.

The research house added that Tan Chong’s performance will also be affected by the initial impact of price hikes in the market, and the launch of the new Nissan Navara in November 2015.

At 10.30 a.m, Tan Chong shares lost 3 sen or 1% of its morning high trading at RM2.95, with 141,300 shares changing hands and a market capitalisation of RM1.93 billion.

Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.