Tan Chong on track to turn profitable in FY18F, says CIMB Research

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KUALA LUMPUR (Oct 8): CIMB IB Research has an “Add” rating on Tan Chong Motor Holdings Bhd at RM1.57 with a target price of RM2 and said the group is on track to turn profitable (at net profit level) in FY18F, after two years of losses in FY16-17.

In a note Oct 6, the research house said this is driven by favourable forex and a recovery in sales volume from new model launches and the reduction in selling prices following the zero-rating of GST in Jun-Aug 2018.