Tat Hong

Tat Hong: CIMB maintains O/p with $1.80 TP. House note that crawler and mobile-crane utilisation should not be a cause for concern as the group has redeployed its fleet for new projects in ASEAN. Earnings should be powered by ASEAN markets going forward. Tower crane rental in China should also continue to grow. That said, house lower FY14-15 EPS for slightly less aggressive utilization assumptions and slightly higher expense items, while raising FY16 EPS by 3% for better working capital measures. Accordingly, house lower target price, still based on 11x CY14 P/E (its 5-year average forward P/E). Overall, reiterate Outperform with strong Asian operations still its main catalyst while potential M&As could catapult the grp’s growth.