TCM – We haircut our TP and maintain our Hold rating on TCM.
TCM – We haircut our TP and maintain our Hold rating on TCM.
December 12, 2017
■ FY17 earnings to surge by 87% on core business recovery, declining revenue contribution from low margin yarn segment and land sales.
■ We expect healthy sales growth to be sustained into 2018 on continued strength in garment sales and fabric capacity expansion.
■ Reported earnings to fall, however, due to lack of one-time gains.
■ TCM is trading at a FY18F forward PE of 7.7x which is roughly in line with the sector average.
