Tat Hong

Tat Hong: Maybank Kim Eng initiates with Buy and $1.41 TP. House note that as Tat Hong’s rental business, which enjoys more stable demand, begins to make up a bigger chunk of its total gross profit, earnings volatility should ease in tandem. Tat Hong stands to benefit from regional infrastructure boom in the medium term. Over the past four qtrs, Tat Hong’s key operating statistics have shown significant improvement. The trend looks set to continue for the next 2-3 years, buoyed by high demand in the region. TP of $1.41, pegged at 14x FY3/13F PE.