TCHONG (4405) : MIDF Research downgrades Tan Chong to Neutral, cuts target price to RM4
KUALA LUMPUR (Dec 9): MIDF Research has downgraded Tan Chong Motor Holdings Bhd (TCM) to “Neutral” (from Buy) with a lower target price of RM4 (from RM4.60) and said TCM was bearish on the domestic auto sector but is positive on sales prospect of the new X-Trail which would be debuting in January 2015.
In a note Tuesday, the research house said while TCM expects aims to improve profitability vis-à-vis market share in 2015, Nissan’s strong model line-up next year could limit promotional activities.
“We cut FY15 earnings by 15% on higher RM/USD and lower sales volume which is partially offset by lower RM/¥100 and some margins recovery. Our FY16 earnings are unchanged.
“As such, our new target price is RM4 while our recommendation on TCM is downgraded to Neutral,” it said.
At 9,30am, TCM fell 0.28% or one sen to RM3.54 with 8,400 shares done.
http://www.theedgemarkets.com
KUALA LUMPUR (Dec 9): MIDF Research has downgraded Tan Chong Motor Holdings Bhd (TCM) to “Neutral” (from Buy) with a lower target price of RM4 (from RM4.60) and said TCM was bearish on the domestic auto sector but is positive on sales prospect of the new X-Trail which would be debuting in January 2015.
In a note Tuesday, the research house said while TCM expects aims to improve profitability vis-à-vis market share in 2015, Nissan’s strong model line-up next year could limit promotional activities.
“We cut FY15 earnings by 15% on higher RM/USD and lower sales volume which is partially offset by lower RM/¥100 and some margins recovery. Our FY16 earnings are unchanged.
“As such, our new target price is RM4 while our recommendation on TCM is downgraded to Neutral,” it said.
At 9,30am, TCM fell 0.28% or one sen to RM3.54 with 8,400 shares done.
http://www.theedgemarkets.com
