Tan Chong Motor Holdings Bhd(March 1, RM1.70)Maintain hold with a target price of RM1.76: Tan Chong Motor Holdings Bhd’s returned to the black in the fourth quarter of financial year 2016 (4QFY16), registering a net profit of RM1.35 million against a net loss of RM4.5 million in 3QFY16, but it was still down from net earnings of RM5.2 million a year ago. For the full FY16, the group reported a net loss of RM54.9 million compared to a net profit of RM74.9 million in FY15. The disappointing results were due to unfavourable exchange rates coupled with higher marketing and promotional costs. The group’s RM54.9 million in FY16 net loss met our expectation of net loss of RM58.1 million and performed better than market expectation of net loss of RM62.5 million. The assembly plant in Myanmar is expected to contribute earnings to the group starting FY17 onwards, albeit at a smaller extent.

Source: The Edge Markets March 02, 2017 02:37 UTC