Tan Chong: TAN Chong's profit margins are likely to face further pressure with South Korean and Japanese players fighting for market share in the passenger car market. The group is said to be considering launching a lower-spec Nissan Sentra to compete with Toyota Vios and Honda City. UT Securities says the group's earnings growth appears to be limited due to flattish car sales. However, Tan Chong would remain a dividend play on the back of its attractive dividend yield of 5.2%. Stock watch on Tan Chong
MAS: CONSIDERING current market conditions, MAS's share price has done well, thanks to the completion of its restructuring exercise and government support. As regional economies are fast recovering and tourists returning, the group should see better prospects ahead. OSK Research says although business conditions are improving, bottom line-wise the company is still not there yet. The research unit says there is still more to be done and MAS would need to earn an average RM100mil in sales per quarter to justify an upgrade. Stock watch on MAS
Ingress: GOING forward, this auto parts supplier is expected to gradually reduce its reliance on national cars due to new contracts secured from Mitsubishi and Honda in Thailand as well as Suzuki in Indonesia. UT Securities says these contracts are expected to start contributing in the company's financial year 2005. Ingress is currently in a strong position to secure contracts to supply parts for Perodua's new model in 2005. It is also negotiating with Proton to supply parts for its new model next year and in 2005. Stock watch on Ingress
Petronas Gas: THE group reported a higher net profit of RM191.3mil for the first quarter ended June 30 on the back of RM561mil in turnover. Analysts say the earnings were higher than market consensus estimates and expect Petronas Gas' revenue from gas processing and transmission as well as its centralised utility facilities to remain at current levels throughout the year. Analysts also say they would like to see the gas processing division earn more from its flow-rate charges before re-rating the stock. Stock watch on Petronas Gas
Public Bank: OSK Research has maintained a buy on Public Bank with a target price of RM2.62. After the privatisation of Public Finance Bhd, Public Bank is poised to take its 61.4%-owned JCG Holdings Ltd private, which would further enhance the group's future earnings. The banking group's latest interim results were also well within expectations, with annualised loan growth at 13.5%, driven by consumer loans. The research house is maintaining loan growth forecast at 10.4% against Public Bank's projection of 10%–15% for financial year 2003. Stock watch on Public Bank
Stock watch on Tan Chong
