Tat Hong: Buy out discussions still ongoing
- Since the first announcement released on 15 Mar, there has been no further information provided regarding the said discussions.
- OCBC notes that crane players have been facing tough competition amid a sustained weak outlook and with valuations at inexpensive levels, further consolidation may naturally occur in the sector.
- Notwithstanding the potential acquisition, OCBC expect the group to further scale down their non-core, unprofitable businesses.
- The tower crane rental segment based in China continues to offer a bright spot for the firm.
- OCBC has a Hold with TP of $0.50.
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