Latest news with #TanChong
The Star
3 days ago
- 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
7 days ago
- 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.
