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Hi there,
anyone have the goldman sachs report on tat hong? i'm interested vesting in this stock would like to read more on the report on this stock.
deeply appreciate if u can send to jemliang_85@yahoo.com
many thanks.
DJ MARKET TALK: Goldman Ups Tat Hong Target To S$3.56, Keeps Buy
0049 GMT [Dow Jones] STOCK CALL: Goldman Sachs raises Tat Hong (T03.SG) target price to S$3.56 from S$3.36; reiterates Buy recommendation. Says in note, raising FY08-09 earnings estimate 9% to reflect better-than-expected outlook for Singapore , Australian construction markets. Stock would trade at 17.5X 2008 earnings at target price; says rating is justified due to company's "robust and resilient earnings growth profile." Tips listing of China tower crane associate, profit margin expansion, potential acquisitions in Australia , China as possible share price catalysts. Stock closed down 7.1% at S$2.76 yesterday; STI down 3%. (KIG)
CIMB-GK REPORT ON JAN 3, 2008
We are convinced that TAT HONG will continue to exceed its long-term
net profit CAGR target of 25%, despite a higher earnings base. We expect TAT to
achieve record earnings annually beyond 2010, thanks to excellent business visibility,
supported by global infrastructure projects, the robust oil & gas market and strong
construction activity. In addition, the shortage of cranes in the market is likely to lift
margins.
Reiterate Outperform with target price raised from S$3.87 to S$5.00.
the stock is worth S$5.00. Our target price is rolled forward from S$3.87 (15x CY08
P/E) to S$5.00 (15x CY09 P/E). Our target 15x P/E multiple is a 50% premium to the
industry average due to its strong track record, excellent growth prospects and
resilient business model. TAT trades at 13.2x CY08 P/E and 10.2x CY09 P/E against
a projected net profit CAGR of 55.5% from 2007 to 2010.
The proposed listing of Tat Hong's (TAT) 21%-owned crane manufacturer, Yongmao Holdings, on the SGX is a positive as it highlights that TAT's China strategy is gathering momentum. Management aims to derive 20% of TAT?s earnings from China by '10. TAT's integration strategy allows it to tackle a shortage of cranes faced by crane leasing companies, and enables it to upgrade its fleet to higher-tonnage machines, maintain a young fleet and reduce maintenance costs.
CIMB maintain outperform with target price rolled forward from $3.87 (15x CY08 P/E) to $5.00 (15x CY09 P/E).
Sebastian Chong, the founder of Shareowl.com, seems to like Tat Hong a lot and has recently bought at $3.26.
His article is reproduced at www.nextinsight.com.sg
Is Tat Hong breaking out of consolidation???
I oni come to know of tat hong shares cos of its presence in ASX.
It shd get to $4 no problem.Also,there will be higher divvy payout in 2008.
Prices at 3.24 now high. Expect it to support at 3.00.
demand for cranes soaring... Being a global player, Tat Hong shd continue to see high earning growth.
an research report on TH by Citigroup last week
Tat Hong Holdings
July 26 close: S$2.40
Citigroup, July 25
GLOBAL crane shortage: The global crane market appears to be getting tighter due to a worldwide construction and infrastructure boom. Once a country with ample supply of cranes, the US is seeing many cranes being shipped out to the Middle East, Asia, Latin America and other regions as bridges, roads, power plants, oil pipelines and other infrastructure are being built.
Rates and price surge: Crane rental companies complain they are out of equipment when customers call and crane manufacturers are running flat out to meet customer orders (lead-times for new large cranes are about 2-3 years versus several months, three years ago). With robust demand, this has led to a surge in prices of used cranes around the world as well as strong rental rate increases.
Solid demand: In Singapore alone, major investments (Marina Bay IR project, Sentosa IR resort and island redevelopment, Circle Line MRT, and Sports Hub) worth a total of about $28 billion are expected to be in progress over the coming years which would likely lead to strong demand for cranes. Further, liquidated damages for any delays (could amount to tens of thousands of dollars/day) are prompting contractors to secure cranes despite the rate increases.
Further re-rating expected: Our recent discussion with Tat Hong suggests that rental rates remain very firm and industry fundamentals robust. We think rates may rise further and the group could see more positive re-rating. Accordingly, we have raised our earnings estimates by between 9-10 per cent and increased our target peg from 18 times to 20 times (supported by a three-year earnings CAGR of 22 per cent), which raises our 12-month target price from $2.30 to $2.80.
BUY
From OCBC Investment Research:
Tat Hong Holdings Ltd: Buying into Kian Ho Bearings
Summary: Tat Hong (THH) has increased its stake in locally-listed Kian Ho Bearings Ltd (KHB) to 30.2% of KHB?s total outstanding shares. KHB is one of the largest stockists, distributors and retailers of bearings and seal products in Southeast Asia and the Far East, which will complement THH?s core business of selling and leasing of heavy equipment. THH?s latest purchase of a 9% stake in KHB cost S$5.46m, and has triggered a mandatory conditional general takeover (GO) for KHB at S$0.26 per share in cash. The GO is conditional on THH obtaining >50% of the stake in KHB. Looking at the accompanying underwriting agreement with CIMB-GK Securities Pte Ltd for share purchases during the GO and the below market offer price, THH appears to be in no mood to pay a substantial premium to KHB shareholders and in no hurry to secure a controlling stake in the target company. Indeed, THH has earlier purchased a 20.9% stake in KHB for about S$0.253 per share in mid-January, and its financial resources could be better spent on expanding its core crane and equipment rental business. Note that KHB?s last closing price was S$0.305. As such, we have kept recurring net profit estimates for THH at S$43.7m in FY07, and S$53.9m in FY08 for the moment. Our fair value for THH is unchanged at S$1.67, using 14x FY08 PER. Maintain BUY. (Chong Wee Lee)
I don't see much downside for TH. Anyway,take your time to enter The Market from now as it is going to take a break.Cheers!
With Tat Hong EX Div (5.5 cts) tommorow and current bear market good chance of entering at bargain price...
Tat Hong would benifit with the improving and benign contruction environments. This counter is good for longer term bet.
The name has got nothing to do with the pricing; it is all about the ability of the Company to bring home the bacon and good managements. CHEERS!!!
I guess perhaps Ang-Moh and middle east investors dun like Chinese names stocks hence the low volume .. Tat Hong means "Too Red " ??
This counter is not moving yet, because the RSI is still weak, n the gap at $1.19 is still not covered. The volume is low, the CHAIKIN OSCILLATOR is turning down, wait for the correction before going in.
I think Tat Hong is a good stock for investment. What do you think guys?
Wednesday February 21, 8:20 AM Reuters
Singapore's Tat Hong buys Australian crane firm for $14 mln
SINGAPORE, Feb 21 (Reuters) - Singapore-listed Tat Hong Holdings , a crane rental company, said on Wednesday its Australian subsidiary has bought a crane company for A$17.8 million ($14 million) in cash.
A company, which had been looking for an acquisition target in Australia for some time, said in a statement that the purchase of Muswellbrook Cranes Services Pty. Ltd. by its Tutt Bryant Group Ltd. unit included A$2.9 million in debt.
The acquisition will be funded by a rights issue, underwritten by ABN AMRO Morgans Corporate Ltd., by Tutt to raise A$49.7 million.
Tat Hong said it will participate in the rights issue to retain its 70 percent shareholding in Tutt.