Tat Hong

Tat Hong: CLSA maintains Buy with $1.43 TP. House note that Tat Hong’s last reported quarter delivered an impressive 36% increase in rev and 204% growth in NPAT YoY; delivering strong growth across all segments. House base case (which conservatively factors in little-to-no sequential growth based on CapU levels) anticipates 2Q13 net profit of $16.8m (+32% YoY) and believe this rebound is both cyclical and secular as SG-listed peers Sin Heng and Tiong Woon also posted strong revenue growth of 14/54% last quarter. Add that a broad basket of Tat Hong’s peers trade at 0x. Alongside ROE returning to +10% levels, house value Tat Hong at 11x13/14CL p/e (vs historical tradingavg of 12.8x) to reiterate a target of $1.43 which currently offers 10% TSR and maintain BUY call.