OCBC Investment Research raised its target price on Tat Hong Holdings to $1.70 from $1.42 and maintained its ‘buy’ rating, citing the strong growth momentum of the cranes and heavy equipment supplier.
Tat Hong shares were down 1.1% at $1.385 on Monday. The stock has jumped 57% so far this year versus the 21% gain in the FT ST Small Cap Index.
Tat Hong reported a 37% increase in second-quarter net profit at $17.3 million , mainly due to the strong performance by its crane rental and tower crane segments.
OCBC said given the tight utilisation rates of Tat Hong’s cranes, the company was expected to buy more crane assets in the second half of 2013 fiscal year for various projects in the region.
This should deepen its market presence and provide the next leg of growth for 2013-2014 fiscal years, OCBC said.
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