Equity Analysis /
Malaysia

MY : Tan Chong Motor Holdings - Slipped back into losses in 1Q22

    Mohd Shanaz Noor Azam
    Mohd Shanaz Noor Azam

    Technology Analyst

    CGS-CIMB
    25 May 2022
    Published by

    1Q22 results missed our and consensus expectations as TCM slipped back into losses due to higher-than-expected opex and unfavourable sales mix. We cut our FY24F EPS and expect the group to stay in the red in FY22F due to inflationary cost pressures and negative impact from ringgit depreciation. Downgrade the stock from Hold to Reduce with a lower RM0.99 TP.