MIDF Research said it has maintained its "neutral" call on Tan Chong Motor Holdings Bhd (4405) with a fair value of RM4.60.
"This is based on 12x financial year 2011 (FY11) earnings which is in line with its five-year average price earning. We did not impute the impact from any property investment until a much clearer picture emerges," it said.
The research house added that the counter was currently trading at almost 14x FY11 earnings, which is relatively higher than its peers at an average of 9x.
"Hence, further price appreciation could provide opportunities for profit-taking," it added.
Meanwhile, MIDF said that the group's first half 2010 net profit were in line with its estimated at RM133.8 million, accounting for 55 per cent of MIDF's full-year forecast of RM243 million.
The group's revenue increased by 29 per cent for the first half of the year on the back of 9 per cent growth in unit sales at 15,266 units versus 13,933 units a year ago.
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