Invest Malaysia: TDM (stock code:2054)

Background:

Plantation + Health Care = STABLE + SOLID BUSINESS.

5 Years Profit and Loss:-

Profit picking up because of CPO contribution and health-care business.

5 Years Balance Sheet:-

Shareholder funds increase from RM488 million to RM709 million and healthy cash reserve will enable company to further expand into health care business and plantation.

Price Performance:-

Strong support level at RM2.60-RM2.80.

Comments:

1. Healthy balance sheet = net cash position.
2. Strong earning = EPS of 48 sen.
3. Potential acquisition for additional hospital to broader its health care unit and enhance futures earning.
4. NTA = RM3.34.

Target Price = RM3.60 - RM4.00 based on PER of 7x to 8x forward earning.