Tat Hong

Tat Hong: Maybank-KE maintains their Buy Call on Tat Hong and $1.80 TP, noting that its impending entry into Myanmar and potential capital gains on sale of land used for crane parking in Singapore are just what is needed to give it a new investment angle. Continue to like Tat Hong for its exposure to the infrastructure sector in ASEAN and the oil & gas sector in Australia, while its China business is turning around and is set to become a more substantial contributor from FY14 onward. Expect earnings growth will normalise to 13.4% CAGR over the next three years but earnings volatility to gradually fade on higher contribution from Crane Rental; in short, enhanced earnings quality.