- Buying opportunity
The share price of Tat Hong has fallen 7.7% in the past one month, despite posting a good set of 3QFY08 results on
13 Feb 08. Despite global equity markets being weak in the past months, the selldown on TAT shares has been
excessive and unwarranted as TAT’s strong fundamentals remain intact. In addition, the business outlook remains
positive with robust construction demand for cranes while the recent successful listing of its China associate,
towercrane manufacturer Yongmao Holdings should provide a boost in sentiment. Valuations are attractive and with
forward P/E near recent lows. Reiterate Outperform with a target price of S$4.43, based on CY09 P/E of 15x.
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