PETALING JAYA: Hong Leong Funding Financial institution (HLIB) Analysis has reaffirmed its “promote” score on Tan Chong Motor Holdings Bhd at RM1.07, with a lowered goal value (TP) of 66 sen, down from 70 sen beforehand.
In a word at the moment, the analysis agency famous that Tan Chong’s core loss after tax and minority pursuits (Latmi) multiplied 5 instances to RM46 million within the second quarter of monetary 12 months 2023 (Q2 FY2023).
The group recorded a Latmi of RM9.2 million in Q2 FY2022, and RM9.8 million in Q1 FY2023.
For the primary half of FY2023, Tan Chong posted a Latmi of RM55.8 million, falling in need of each HLIB’s expectations and consensus estimates.
HLIB cited a number of elements affecting Tan Chong’s efficiency – intense competitors within the Malaysian market, the lack of MG distributorships in Vietnam, and difficult circumstances in Laos, Cambodia and Myanmar as a result of weakened shopper sentiment and political instability.
Moreover, HLIB anticipates extra challenges within the second half of FY2023, specifically the continued appreciation of the US greenback and rising price of logistics and materials.
“(We) preserve our ‘promote’ advice on Tan Chong with a decrease TP of 66 sen (from 70 sen) based mostly on 10 instances the group’s PE (price-earnings) to FY2025 earnings,” it stated.
As at 9.37am, Tan Chong’s share value was flat at RM1.07, giving the group a market capitalisation of RM719.04 million.