Tat Hong’s net profit plunged 62.7% to $4.5m in Q3

Its bottom line was rescued by a forex gain.

Tat Hong reported that its profit after tax and minority interest plunged 62.7% year-on-year to $4.5m in Q3, on back of a 7.4% decline in revenue to $154.9m.

Management highlighted that there was in fact an improvement in this quarter’s underlying profit excluding a $13m one-off gain received in 3QFY14 from the disposal of the purchase rights for a plot of land in Iskandar, Malaysia.

However, OCBC notes that Tat Hong’s results were still unexciting as 3QFY15 was also helped by a net foreign exchange gain of $4.8m, without which, its bottom line would have conceivably been worse off as well.

“While the counter’s share price has fallen by ~10% over the past three months, current valuation appears fair rather than attractive,” stated OCBC.