TAT Tong

TAT Tong: CIMB maintains O/p with $1.90 TP. Note that Tat Hong maintains its position as the leading crane rental company in Asia. Its operational prowess has resulted in its fleet being deployed in several landmark projects in the Asia-Pacific Rim. Its share price has outperformed over the past year and should continue to do so. See positive operational leverage and efficiency through better working capital mobilise in this business. Earnings sustainability is organically driven while M&A ventures in resilient sectors/markets would lift its growth trajectory. Maintain earnings estimates, target price basis of 11x CY14 P/E (5-year average forward P/E) and Outperform rating.