Tat Hong

Tat Hong: Kim Eng note that improvements to Tat Hong’s operating statistics (fleet size, utilisation and rental rates) have been evident in recent qtrs. House believe this would continue for the next 2-3 yrs. Note that there is potential for its China business to turn around after it successfully transferred the problematic China JV’s assets to another JV over which it has better control. Tat Hong’s net profit has rebounded from $3.8m in 4Q11 to $11.2m in 4Q12, and given its stable improvement so far, it would not take long before it again hits its earnings peak of $90m achieved in FY08.