Latest news with #TanChong
New Straits Times
6 days ago
- Automotive
- New Straits Times
Tan Chong falls 8.0pct before settling flat at midday
KUALA LUMPUR: Tan Chong Motor Holdings Bhd's share price dipped as much as 8.0 per cent in the morning session, before recovering to trade flat at 79 sen by the midday break. The stock touched an intraday low of 72.5 sen, retracing gains from Wednesday's close of 79 sen. It emerged as one of the most actively traded counters, with 19.56 million shares changing hands. The volatility followed an unusual market activity query by Bursa Malaysia yesterday, after the stock surged 44 per cent or 25.5 sen to 83.5 sen from 58 sen on Tuesday. RHB Research said Wednesday's rally reflected a shift in market sentiment, prompting the firm to upgrade its call on the stock to "Buy" from "Sell", with a significantly higher target price of RM1.12 from 27 sen previously. The firm said the market started to relook at Tan Chong from an underlying asset angle following an unexpected land sale on July 10. Tan Chong sold 1.30 hectares along Jalan Putra for RM148.8 million following the first land sale to Avaland Bhd in Petaling Jaya earlier this month for RM49 million. The total gain on disposal for these lands is expected to be between RM15 million and RM18 million with both deals transacted between RM518 per square feet and RM1,067 per sq ft. RHB Research said Tan Chong owns around 5.67-hectare non-manufacturing land - including showrooms, storage and service centres - across Selangor, Kuala Lumpur and Johor, based on its latest annual report. "Assuming market values of RM250-RM1,050 per sq ft, we estimate these lands could be worth RM220 million, roughly 40 per cent of Tan Chong Motor's market capitalisation. "More importantly, the group does not disclose its exhaustive list of assets. "Hence, there may be other smaller properties that might not be used for its automotive business but are suitable for redevelopment, such as the recent land disposal was not included in the Top 10 largest properties, implying more assets to be potentially realised," the firm added. RHB Research said Tan Chong still retains its traditional automotive model of owing the distribution network, which includes showrooms/properties vis-à-vis the current agency distribution model. The firm said there may be incentives for Tan Chong to resize its business model by selling some of their showrooms as Nissan's market share has fallen from six per cent of TIV in 2010 to one per cent in 2024. The group operates around 50-60 branches, of which 20-30 per cent are based in Kuala Lumpur.
The Star
03-06-2025
- Automotive
- The Star
Tan Chong forecast to stay in low gear for now
PETALING JAYA: With the challenges it is facing expected to persist, Tan Chong Motor Holdings Bhd has been downgraded to a 'sell' rating by Maybank Investment Bank Research (Maybank IB Research). The research house expects the automotive group to record losses for this financial year (FY25) despite its return to the black with a RM4.14mil net profit in the first quarter of financial year ended March 31 (1Q25). Revenue for 1Q25 declined slightly by 2% year-on-year to RM553mil, mainly due to continued weakness in the sales of Nissan vehicles, which fell by one-fifth to 1,811 units from a year ago. On a positive note, operations in other regions like Vietnam, Cambodia, Laos and Myanmar posted growth, which partially offset the domestic sales decline. However, Maybank IB Research expects challenges in the group's automotive segment to persist, underpinned by weak product appeal and intensifying competition. 'While, we maintain the stock's 38 sen target price based on 0.1 time FY25 book value, we have downgraded our call to 'sell', as we believe downside risks have increased following the recent rally in the share price.' Meanwhile, MIDF Research said Tan Chong's efforts to expand its product portfolio may not translate to meaningful volume contributions from the newer marques in the near term as building brand awareness will likely take time. Thus, it expects the group to stay loss-making. MIDF has a 'sell' rating and 34 sen target price on the stock. Hong Leong Investment Bank Research (HLIB Research) expects some improvement in coming quarters, driven by the recent appreciation of the ringgit. Still it is cautious about the group's outlook because of stiff market competition despite the new launches planned. According to HLIB Research, the launch of new Kicks sport utility vehicle last December is expected to improve group sales in Malaysia. Tan Chong has also started exporting the Serena multi-purpose vehicle to Thailand and recently signed a collaboration agreement with SAIC GM Wuling Automobile to locally assemble the Tan Chong-branded TQ Wuling Bingo electric vehicle (EV), an affordable entry-level compact EV targeting value-driven and urban commuters. 'Management also expects improvements in the Vietnam market, following increasing the introduction of new GAC models into the market. 'Nevertheless, we remain cautious about the group's domestic market outlook, due to the ongoing stiff competition in various segments, as both national marques and non-national original equipment manufacturers introduce new attractive models. 'Recent ringgit appreciation is expected to improve the cost structure of its Malaysia operations' said HLIB Research. The research house has a 'hold' rating on the stock, with a higher target price of 42 sen from 35 sen.
The Star
29-05-2025
- Politics
- The Star
Rep wants more homes for Orang Asli in Bekok
Tan says there is a need for houses with running water and electricity for the Orang Asli community in Bekok, Segamat. MORE housing units for the Orang Asli community are needed in Bekok, says its assemblyman Tan Chong. He said many from the community had voiced hope for Johor government to address the lack of houses for them in the constituency in Segamat district. 'I often receive complaints from Orang Asli village chiefs on the need to increase housing, complete with water and electricity supplies, for them. 'To my knowledge, more than 140 applications from the community in Bekok have been submitted to Orang Asli Development Department (Jakoa) for houses,' he told the state assembly during a debate session at Bangunan Sultan Ismail in Kota Iskandar. Tan said at present, there were six Orang Asli villages in his constituency – Kampung Kudung, Kampung RPS Tembayan, Kampung Tamok, Kampung Kemidak, Kampung Selai dan Kampung Lenek. 'We hope the state government through Jakoa will consider their requests so that the Orang Asli can live comfortably.' He also highlighted that better roads were needed between Kampung Lenek and Kampung Baru Sungai Karas in Labis. Tan said the distance between the two villages was 6km but the time taken to travel between them was long due to lack of proper roads. 'Residents wanting to travel to Labis town for daily errands have to take the long way using Jalan Utama Segamat-Yong Peng. 'If proper roads can be constructed, it will benefit hundreds of residents in the surrounding area, including Kampung Panca Jaya,' he said. Meanwhile, Tan told the state assembly that he was against the implementation of a paid parking system in Labis, as it was a small town located within Segamat district. 'Residents mostly use motorcycles as their main mode of transport, so there is not much need for local council paid parking bays. 'It will also be a burden to small-town folk,' he said, adding that he had spoken out against the implementation of such a system years ago.
