Tong Herr Resources (THR) has been a manufacturer of stainless steel nuts, bolts and screws for over 20 years, with its Malaysian base in Prai, Penang. Its recent acquisition of Metech Aluminium Industries will add aluminium extrusion products to its offering and make a full-year contribution in FY11, while the manufacture of steel billets is also on the cards. We value THR at RM3.10 based on a 10x FY11 PER, on the back of its new and future income streams, recovering ASPs and strengthening external demand. Initiate coverage with a Buy recommendation.
My view:
Hardly traded, low volume. Let's see how the market react to this.
As of 1230pm, TONGHER lost 5 sen to RM2.55 with only 13,000 shares traded.
This blog is related to observations regarding stocks traded in Malaysia. Disclaimer: The company analysis that appear in this blog is merely facts gathered from different sources and the author's personal view. It is not a buy or sell recommendation. The author do not guarantee the accuracy of the facts being presented. Please consult your investment advisors before acting on any information provided by the analysis above.
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