Tan Chong Motor: Maintain Buy - Expect Solid 2Q12 Results

Expect Solid 2Q12 Results

• Maintain BUY and TP of MYR5.38 (10x FY13 PER). We expect TCM to post 2Q12 results that are stronger on a QoQ basis, within our expectation.
• 2H12 would be even stronger, we project, driven by higher vehicle sales, notably the new Almera model. FY12 earnings however may have downside risk from the overseas operations.
• We maintain our earnings forecasts for now, and reckon investors should look to TCM's FY13 prospects, for its competitively- priced B-segment model line-up which will likely capture the attention of the domestic market.

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Source: Maybank Research - 15 August 2012