OCBC Securities 2015-08-13: Tat Hong Holdings: Intends to spin-off tower crane rental business on TWSE. Maintain HOLD.

TAT HONG HOLDINGS LTD T03.SI

Intends to spin-off tower crane rental business on TWSE 

  • Following an earlier announcement in Oct last year, Tat Hong announced yesterday evening that it intends to spin-off its tower crane rental business, which operates in China, via a listing of shares in Tat Hong Equipment Service Co (THES) on the Taiwan Stock Exchange (TWSE). 
  • The group has submitted an application for the proposed listing but we note that the proposed listing is still in its preliminary stages and several regulatory approvals will be required during this process. 
  • We view this move positively, as a spinoff of its capital-intensive business would offer an additional source of funding and allow more focus on improving its other core businesses in Australia and ASEAN. 
  • Meanwhile, as we continue to see no sign of pick up for its core markets, maintain HOLD with FV estimate of S$0.57 at this juncture. 

Jodie Foo | http://www.ocbcresearch.com/ OCBC Investment Research 2015-08-13
HOLD Maintain HOLD 0.57 Same 0.57


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