Tat Hong

Tat Hong: 9M13 strong results in-line with Street. Revenues grew 19% y/y to $637m, earnings grew 67% y/y to $52m. Main drivers were the robust growth in the highest-margin crane rental sector for the regional and LNG projects in Australia, and the turnaround of Tower Crane Rental business in China. Mgmt stated that Company's profit for 9M13 have surpassed their FY12 profits, and is confident of achieving good results for FY13, through Asia Pac's growth of infrastructure and O&G sectors. Higher utilization going forward is also expected, due to the new contracts in the pipeline in relation to the LNG projects in Australia. Infrastructure activities in the region should also continue to support the Company's growth; Urbanization in China is also recovering earlier than expected. Maybank KE have a BUY rating with TP of $1.78 on a 14.9x forward PER and 1.4x P/B; OCBC maintains a BUY rating and increases TP to $1.75.