[%ATwn%] 
Research by HLIB
SELL – TP RM0.65 

" Remains in the red”

TCM reported core LATMI -RM30.8m in 2QFY24 (vs. -RM30.9m in 1QFY24; -RM46.0m in 2QFY23), which further dragged 1HFY24 to -RM61.7m (vs. -RM55.8m in 1HFY23). This was within HLIB’s expectation, but below consensus. We expect TCM’s performance to remain dragged by ongoing stiff market competition in Malaysia, while Laos, Cambodia and Myanmar markets are affected by deteriorated consumer sentiment and political uncertainty. Nevertheless, we expect improvements in 2HFY24 with the commencement of GAC distributorship in Vietnam and recent RM appreciation. Maintain our SELL recommendation on TCM with an unchanged TP: RM0.65 based on 12x PE to FY25 earnings. 

Analyst:
Daniel Wong
[%Rahq%]

$KLSE-TCHONG 
Research by HLIB
SELL – TP RM0.65 

" Remains in the red”

TCM reported core LATMI -RM30.8m in 2QFY24 (vs. -RM30.9m in 1QFY24; -RM46.0m in 2QFY23), which further dragged 1HFY24 to -RM61.7m (vs. -RM55.8m in 1HFY23). This was within HLIB’s expectation, but below consensus. We expect TCM’s performance to remain dragged by ongoing stiff market competition in Malaysia, while Laos, Cambodia and Myanmar markets are affected by deteriorated consumer sentiment and political uncertainty. Nevertheless, we expect improvements in 2HFY24 with the commencement of GAC distributorship in Vietnam and recent RM appreciation. Maintain our SELL recommendation on TCM with an unchanged TP: RM0.65 based on 12x PE to FY25 earnings. 

Analyst:
Daniel Wong
kkwong@hlib.hongleong.com.my

$TCHONG / 4405 (TAN CHONG MOTOR HOLDINGS BERHAD)