Tan Chong Motor: Maintain Buy - Disheartening 2Q12

• Maintain BUY, but TP shaved to MYR5.00 (-8%) following a 9-22% downgrade in earnings forecasts on a weaker-than-expected 2Q12 results.
• We still expect a better 2H12 on improved vehicle sales and lower overheads. TCM remains a laggard play on the auto sector, in our view.
• Investors should look to TCM's FY13 prospects and beyond, for its competitively-priced B-segment Almera would be the catalyst for the mid-term growth. Our TP is pegged to 10x FY13 PER.

Click here for full report

Source: Maybank Research - 16 August 2012