KUALA LUMPUR (Aug 21): CGS-CIMB Research has maintained its “Hold’ rating on Tan Chong Motor Holdings Bhd at RM1.45 with a lower target price (TP) of RM1.42 (from RM1.52) and said Tan Chong 1H19 results missed expectations due to wider losses in Vietnam’s operations, higher depreciation and tax expense incurred in 2Q19.

In a note Aug 20, the research house said it sees a challenging domestic outlook in 2H19 due to the lack of new model launches, absence of tax holiday and unfavourable forex movement.

“We cut our FY19-21F EPS by 7-17%. Maintain Hold with a lower RM1.42 TP.

“Switch to Bermaz Auto Bhd for exposure to the Malaysian auto sector,” it said.