[%ZnnP%] 
Research by HLIB
Sell – TP of MYR 0.65

“Staying cautious” 

1QFY24 results wasdisappointing on lower-than-expected group sales volume and margins (further affected by weakened local currencies). Malaysia market remains competitive due to attractive new launches by various competing OEMs. The introduction of e-POWER Nissan Kicks in 2HFY24 is expected to improve the group’s sales volume. Similarly, the commencement of GAC distributorship in 2HFY24 in Vietnam market should improve the group’s market position. Other Indochina markets are expected to remain weak in coming quarters. Maintain our SELL recommendation on TCM with an unchanged TP of RM0.65 based on 12x PE on FY25 earnings.

Analyst(s):
Daniel Wong
[%CCXo%]

$KLSE-TCHONG 
Research by HLIB
Sell – TP of MYR 0.65

“Staying cautious” 

1QFY24 results wasdisappointing on lower-than-expected group sales volume and margins (further affected by weakened local currencies). Malaysia market remains competitive due to attractive new launches by various competing OEMs. The introduction of e-POWER Nissan Kicks in 2HFY24 is expected to improve the group’s sales volume. Similarly, the commencement of GAC distributorship in 2HFY24 in Vietnam market should improve the group’s market position. Other Indochina markets are expected to remain weak in coming quarters. Maintain our SELL recommendation on TCM with an unchanged TP of RM0.65 based on 12x PE on FY25 earnings.

Analyst(s):
Daniel Wong
kkwong@hlib.hongleong.com.my

$TCHONG / 4405 (TAN CHONG MOTOR HOLDINGS BERHAD)