SEHK:693Retail Distributors
Tan Chong International (SEHK:693) Stock Margin Squeeze Clouds Its 14.6x P E
Tan Chong International shares closed at HK$1.55 after a flat week, even as the latest half year numbers quietly reset the earnings story. The headline is not the revenue line. It is the squeeze in profitability, with trailing net profit margin sitting at 1.8% compared with 4.2% a year earlier, and five year earnings trending lower each year on average. The stock trades on a trailing P/E of 14.6x against a much higher peer and sector average, which sets up a sharp clash between market doubt...