♦ Wah Seong Corp
Visit note : More Earnings Disappointment Likely In 3Q
♦ Tan Chong Motors
News Update : Tie Up With Xi’an Silver Bus Corporation
♦ Market Technical Reading
Daily Trading Strategy : Muted Trading Sentiment Expected…
Corporate Highlights...-09/09/2010
Showing posts with label Tan Chong Motor. Show all posts
Showing posts with label Tan Chong Motor. Show all posts
Thursday, September 9, 2010
RHB Equity 360° (Wah Seong, Tan Chong; Technical: TMC Life Sciences) - 09/09/2010
Top Story : Wah Seong – More Earnings Disappointment Likely In 3Q Underperform
Visit Note
- We recently met up with management and came away with a bleaker outlook for the rest of FY10. Current oil and gas contract flows, especially for fabrication jobs, remain slow even though new development
projects appear to be on the table. We thus suspect 3QFY10 earnings will again be weak and potentially similar to 2Q results.
- The management had limited visibility in regards to timing of the Australian coal seam gas (CSG) projects awards. However they are slightly positive on their Nigerian tie-up with partner Pipe Coaters Nigeria (PCN) as the company has managed to secure some projects. While near-term contributions from Nigeria are minimal, we are nonetheless positive as it gives Wah Seong access to the West African region.
- We give Wah Seong the benefit of doubt and look to a better FY11. The Gorgon project should set a base for the company’s earnings, while present speculated E&P activities could materialise by 2011 and lead to better contract flows.
- We trim our FY10/FY11/FY12 net profit estimates again, this time by 17.9%/5.1%/3.9% respectively. Our cuts are extensive on FY10, as we expect it to be a very weak year.
- FY10 looks to be a significantly weak year and re-rating catalysts look like they will only emerge in FY11.
Fair value for the stock downgraded to RM1.79/share (from RM1.89/share) based on an unchanged 13x PER. We maintain our Underperform call on the stock
RHB Equity 360°(Wah Seong, Tan Chong; Technical: TMC Life Sciences)-09/09/2010
Visit Note
- We recently met up with management and came away with a bleaker outlook for the rest of FY10. Current oil and gas contract flows, especially for fabrication jobs, remain slow even though new development
projects appear to be on the table. We thus suspect 3QFY10 earnings will again be weak and potentially similar to 2Q results.
- The management had limited visibility in regards to timing of the Australian coal seam gas (CSG) projects awards. However they are slightly positive on their Nigerian tie-up with partner Pipe Coaters Nigeria (PCN) as the company has managed to secure some projects. While near-term contributions from Nigeria are minimal, we are nonetheless positive as it gives Wah Seong access to the West African region.
- We give Wah Seong the benefit of doubt and look to a better FY11. The Gorgon project should set a base for the company’s earnings, while present speculated E&P activities could materialise by 2011 and lead to better contract flows.
- We trim our FY10/FY11/FY12 net profit estimates again, this time by 17.9%/5.1%/3.9% respectively. Our cuts are extensive on FY10, as we expect it to be a very weak year.
- FY10 looks to be a significantly weak year and re-rating catalysts look like they will only emerge in FY11.
Fair value for the stock downgraded to RM1.79/share (from RM1.89/share) based on an unchanged 13x PER. We maintain our Underperform call on the stock
RHB Equity 360°(Wah Seong, Tan Chong; Technical: TMC Life Sciences)-09/09/2010
Thursday, August 19, 2010
Tan Chong Motor Berhad : Stronger Car Sales And Favourable Forex Rates - 19/08/2010
♦ 2QFY12/10 results meet expectations. 1H10 net profit of RM128.3m achieved 49% and 50% both our and of consensus estimates as the company’s car sales grew in line with the general pick up in the Malaysian automotive sectors’ total industry volume (TIV) seen since the start of 2010. An interim dividend per share of 6 sen (less tax of 25%) was declared in the quarter, above the 5 sen (less tax of 25%) interim dividend per share declared in FY09.
Tan Chong Motor Berhad : Stronger Car Sales And Favourable Forex Rates - 19/08/2010
Tan Chong Motor Berhad : Stronger Car Sales And Favourable Forex Rates - 19/08/2010
Thursday, May 27, 2010
Tan Chong Motors Holdings Berhad : Steady Start To The Year - 27/05/2010
1QFY12/10 results in line. 1QFY12/10 results were largely in line with our and market expectations, accounting for 24.9% and 27.9% of our full-year forecast and market consensus respectively.
Tan Chong Motors Holdings Berhad : Steady Start To The Year
Tan Chong Motors Holdings Berhad : Steady Start To The Year
RHB Equity 360° (MPI, Ta Ann, KLK, RCE, Gent Plant, IJM Land, IJM Plant, IJM Corp, Proton, Tan Chong, Mah Sing, Allianz, MCIL; Technical: UEM Land)
Top Story : MPI – Stronger Growth Ahead Outperform
Briefing Note
♦ MPI expects 4QFY06/10 revenue to register stronger qoq growth, given that 3QFY06/10 qoq growth of +2.0% which bucks the trend of a seasonally weaker quarter.
- Also, MPI expects 4QFY06/10 net profit to grow sequentially on the back of:
1) higher utilisation rate;
2) stronger contribution from MLP and high-density packages; and
3) margin expansion stemming from higher contribution of high-density packages and cost-cutting measures.
♦ We understand that overall utilisation rates have increased to 95% from 85% in 2QFY06/10. Note that utilisation rates for Ipoh, Suzhou, and Dynacraft plants currently stands at 95%, 100%, and 90% respectively (vs. 90%, 100%, and 85% in 3QFY06/10).
♦ Separately, with Ipoh and Suzhou plants currently running at full-capacity, we understand that MPI expects to raise capacity for these plants by 25% and 30% by Sep-10. Note that MPI is targeting to increase its higher-margin MLP capacity to 12m/day by end-FY10 (vs. 8m/day currently). In addition, management had stated that it will be using the spare capacity from the Advance Packages (AP) line to expand its MLP packages as well as high-density packages. Furthermore, given the capex of around RM3m for its new etch and strip plating capacity, MPI expects capacity for Dynacraft’ to increase by 20%.
♦ Maintain Outperform with a fair value of RM8.46/share.
RHB Equity 360°( MPI, Ta Ann, KLK, RCE, Gent Plant, IJM Land, IJM Plant, IJM Corp, Proton, Tan Chong,Mah Si...
Briefing Note
♦ MPI expects 4QFY06/10 revenue to register stronger qoq growth, given that 3QFY06/10 qoq growth of +2.0% which bucks the trend of a seasonally weaker quarter.
- Also, MPI expects 4QFY06/10 net profit to grow sequentially on the back of:
1) higher utilisation rate;
2) stronger contribution from MLP and high-density packages; and
3) margin expansion stemming from higher contribution of high-density packages and cost-cutting measures.
♦ We understand that overall utilisation rates have increased to 95% from 85% in 2QFY06/10. Note that utilisation rates for Ipoh, Suzhou, and Dynacraft plants currently stands at 95%, 100%, and 90% respectively (vs. 90%, 100%, and 85% in 3QFY06/10).
♦ Separately, with Ipoh and Suzhou plants currently running at full-capacity, we understand that MPI expects to raise capacity for these plants by 25% and 30% by Sep-10. Note that MPI is targeting to increase its higher-margin MLP capacity to 12m/day by end-FY10 (vs. 8m/day currently). In addition, management had stated that it will be using the spare capacity from the Advance Packages (AP) line to expand its MLP packages as well as high-density packages. Furthermore, given the capex of around RM3m for its new etch and strip plating capacity, MPI expects capacity for Dynacraft’ to increase by 20%.
♦ Maintain Outperform with a fair value of RM8.46/share.
RHB Equity 360°( MPI, Ta Ann, KLK, RCE, Gent Plant, IJM Land, IJM Plant, IJM Corp, Proton, Tan Chong,Mah Si...
Tuesday, May 11, 2010
RHB Equity 360° - 11 May 2010 (Plantation, KLK; Technical: Tan Chong)
Sector Update
♦ Malaysia’s CPO production fell back in Apr 10 by 5.8% mom, while exports also fell by 8.2% mom. Despite the larger drop in exports versus production, closing CPO stock levels fell to 1.62m tonnes in Apr (from 1.65m tonnes in Mar). As a result, stock/usage ratio fell further to 8.8% (from 8.9% in Mar and versus the 7- year average of 9.1%). We expect this to moderate for another 1-2 months, as the weak seasonal production period continues and as exports pick up on an improved economic outlook, although this should start reversing subsequently, as we approach the peak seasonal production period.
♦ Over the recent month, there have been five main developments including: 1) Argentina soybean oil ban continues; 2) India asking to re-impose import tax; 3) Malaysian labour issues escalating; 4) Crude oil price dropped drastically; and 5) Narrowing of discounts with soyoil and rapeseed oil.
♦ No change to our CPO price assumptions and forecasts. We maintain our Overweight stance on the sector and our view that in the volatile market environment this year, the more liquid big-cap stocks will be favoured, especially since the gap between the big-cap and smaller-cap stocks has narrowed recently. We continue to rate KLK as our top pick, due to its inexpensive valuations (as it remains the cheapest amongst the big-cap plantation stocks currently) and for its strong management with a good track record.
RHB Equity 360° - 11 May 2010 (Plantation, KLK; Technical: Tan Chong)
♦ Malaysia’s CPO production fell back in Apr 10 by 5.8% mom, while exports also fell by 8.2% mom. Despite the larger drop in exports versus production, closing CPO stock levels fell to 1.62m tonnes in Apr (from 1.65m tonnes in Mar). As a result, stock/usage ratio fell further to 8.8% (from 8.9% in Mar and versus the 7- year average of 9.1%). We expect this to moderate for another 1-2 months, as the weak seasonal production period continues and as exports pick up on an improved economic outlook, although this should start reversing subsequently, as we approach the peak seasonal production period.
♦ Over the recent month, there have been five main developments including: 1) Argentina soybean oil ban continues; 2) India asking to re-impose import tax; 3) Malaysian labour issues escalating; 4) Crude oil price dropped drastically; and 5) Narrowing of discounts with soyoil and rapeseed oil.
♦ No change to our CPO price assumptions and forecasts. We maintain our Overweight stance on the sector and our view that in the volatile market environment this year, the more liquid big-cap stocks will be favoured, especially since the gap between the big-cap and smaller-cap stocks has narrowed recently. We continue to rate KLK as our top pick, due to its inexpensive valuations (as it remains the cheapest amongst the big-cap plantation stocks currently) and for its strong management with a good track record.
RHB Equity 360° - 11 May 2010 (Plantation, KLK; Technical: Tan Chong)
Friday, April 2, 2010
RHB Equity 360° (Property, Banks, Sunway, Tan Chong, MAHB, KLCC; Technical: Tanjong) - 02/04/2010
Top Story : Property – Bullish outlook for developers Overweight
Sector Update
♦ Three key points support our bullish stance on the property sector: a) Strong sales momentum despite rate hike, supported by: a) high affordability; and b) home buyers are rushing to buy properties to capitalise on current cheap financial packages before further rate hike amidst the economic recovery; b) Pent-up
demand is supported by aggressive property launches by developers. Apart from higher property sales, we also expect better margins for developers due to the gradual withdrawals of housing incentives offered; and c) No housing bubble in the local property market, hence, lesser policy risk compared to regional peers.
♦ Prices are expected to be well supported with continued buying interest by the locals. We also expect increasing participation of foreign buyers ahead given: a) relatively cheap property prices in Malaysia compared to regional peers; b) anticipation of stronger exchange rate; and c) expect more active foreign
participation as confidence in the new economic model gathers momentum.
♦ Maintain Overweight on the property sector.
♦ Top picks: IJM Land (OP, FV = RM3.19), Suncity (OP, FV = RM5.33) and Mah Sing (OP, FV = RM2.45).
RHB Equity 360° (Property, Banks, Sunway, Tan Chong, MAHB, KLCC; Technical: Tanjong) - 02/04/2010
Sector Update
♦ Three key points support our bullish stance on the property sector: a) Strong sales momentum despite rate hike, supported by: a) high affordability; and b) home buyers are rushing to buy properties to capitalise on current cheap financial packages before further rate hike amidst the economic recovery; b) Pent-up
demand is supported by aggressive property launches by developers. Apart from higher property sales, we also expect better margins for developers due to the gradual withdrawals of housing incentives offered; and c) No housing bubble in the local property market, hence, lesser policy risk compared to regional peers.
♦ Prices are expected to be well supported with continued buying interest by the locals. We also expect increasing participation of foreign buyers ahead given: a) relatively cheap property prices in Malaysia compared to regional peers; b) anticipation of stronger exchange rate; and c) expect more active foreign
participation as confidence in the new economic model gathers momentum.
♦ Maintain Overweight on the property sector.
♦ Top picks: IJM Land (OP, FV = RM3.19), Suncity (OP, FV = RM5.33) and Mah Sing (OP, FV = RM2.45).
RHB Equity 360° (Property, Banks, Sunway, Tan Chong, MAHB, KLCC; Technical: Tanjong) - 02/04/2010
Monday, March 15, 2010
RHB Equity 360° (Notion, MBM; Technical: Tan Chong, Cahya Mata Sarawak) - 15/03/2010
Top Story : Notion Vtec – Moving Up the Value Chain Outperform
New Coverage
- Notion Vtec (Notion) is an integrated precision engineering specialist and tools maker.
- Notion is expected to extensively produce for Samsung 2.5" baseplates components with initial production of 100K units per/month rising sharply to 1m units per/month (by June) and 2m pieces per/month by end-2010 respectively. We expect this to grow significantly in FY11-12 as Notion steps-up its capability to produce higher-value components.
- Recall that Nikon acquired a 8.98% via a private placement exercise raised about RM33.8m. The proceeds will be used for its plant in Thailand with plans for further expansion. We expect Notion Nikon to further develop its expertise and technical know-how in order to service Nikon which will further improve production efficiently.
- We estimate revenue growth in FY10, FY11, and FY12 to driven mainly by: 1) stronger demand in the 2.5" HDD segment particularly the robust orders from Samsung; and 2) stronger contribution from its camera division given volume loading from Nikon.
- We estimate a fair value of RM 4.59 based on 10x FY11 EPS. Initiate coverage with an Outperform recommendation.
RHB Equity 360° (Notion, MBM; Technical: Tan Chong, Cahya Mata Sarawak) - 15/03/2010
New Coverage
- Notion Vtec (Notion) is an integrated precision engineering specialist and tools maker.
- Notion is expected to extensively produce for Samsung 2.5" baseplates components with initial production of 100K units per/month rising sharply to 1m units per/month (by June) and 2m pieces per/month by end-2010 respectively. We expect this to grow significantly in FY11-12 as Notion steps-up its capability to produce higher-value components.
- Recall that Nikon acquired a 8.98% via a private placement exercise raised about RM33.8m. The proceeds will be used for its plant in Thailand with plans for further expansion. We expect Notion Nikon to further develop its expertise and technical know-how in order to service Nikon which will further improve production efficiently.
- We estimate revenue growth in FY10, FY11, and FY12 to driven mainly by: 1) stronger demand in the 2.5" HDD segment particularly the robust orders from Samsung; and 2) stronger contribution from its camera division given volume loading from Nikon.
- We estimate a fair value of RM 4.59 based on 10x FY11 EPS. Initiate coverage with an Outperform recommendation.
RHB Equity 360° (Notion, MBM; Technical: Tan Chong, Cahya Mata Sarawak) - 15/03/2010
Friday, March 12, 2010
Corporate Highlights - 12/03/2010
♦ Fajarbaru Builder Group
Visit Note : Eyeing RM400m PFI Teaching-Hospital In Kuantan
♦ Oil & Gas
Sector Update : Stronger Contract Flows In 2H 2010
♦ Axiata Group
News Update : Raising XL’s Free Float
♦ Berjaya Sports Toto
News Update : New RM8.88m Minimum Jackpot Game To Start 18 March
♦ Tan Chong Motor
News Update : Signed Nissan’s Distribution Rights For Cambodia
♦ Market Technical Reading
Daily Trading Strategy : In Cautious Mode!
Corporate Highlights -12/03/2010
Visit Note : Eyeing RM400m PFI Teaching-Hospital In Kuantan
♦ Oil & Gas
Sector Update : Stronger Contract Flows In 2H 2010
♦ Axiata Group
News Update : Raising XL’s Free Float
♦ Berjaya Sports Toto
News Update : New RM8.88m Minimum Jackpot Game To Start 18 March
♦ Tan Chong Motor
News Update : Signed Nissan’s Distribution Rights For Cambodia
♦ Market Technical Reading
Daily Trading Strategy : In Cautious Mode!
Corporate Highlights -12/03/2010
Tan Chong Motor Berhad : Signed Nissan’s Distribution Rights For Cambodia - 12/03/2010
Distribution agreement with Nissan. Tan Chong’s wholly-owned subsidiary, ETCM (C) Pty Ltd (“ETCM (C)”) and Nissan Motor Co Ltd (“Nissan”) has signed a new Distribution Agreement yesterday. With the signing of the new agreement Tan Chong will be the sole and exclusive distributor of Nissan’s CBU vehicles in Cambodia for a period of two years with the option of renewal every year thereafter. This agreement is expected to take effect in the second quarter of 2010 with an initial sales volume of 200 units.
Tan Chong Motor Berhad : Signed Nissan’s Distribution Rights For Cambodia - 12/03/2010
Tan Chong Motor Berhad : Signed Nissan’s Distribution Rights For Cambodia - 12/03/2010