TAT HONG HOLDINGS LTD
T03.SI
Tat Hong Holdings: Discussions still ongoing
- Tat Hong Holdings recently announced that discussions regarding a potential acquisition of the issued share capital of the company are still ongoing, and there is no certainty or assurance that these discussions will result in any transaction.
- Since the first announcement released on 15 Mar, there has been no further information provided regarding the said discussions.
- We note 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, we 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.
- We currently have a HOLD rating on the stock with fair value estimate of S$0.50.
Jodie Foo
OCBC Securities
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http://www.ocbcresearch.com/
2016-06-20
OCBC Securities
SGX Stock
Analyst Report
0.50
Same
0.50
