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TCM - Earnings still weak despite yarn margin recovery - Earnings Flash

Company Research

25 Oct 2016

TCM released Q3 2016 results with YTD 9M 2016 revenue +7.6% and NPAT -32.1% vs 9M 2015, which is in line with our forecasts. Q3 revenue and NPAT, however, recorded a fall of 1.9% YoY and 12.5% YoY, respectively. Given the poor performance of textile exports due to sluggish demand and pricing pressure, in combination with rising uncertainty about TPP being ratified by the US Congress, we may revise down our target price in the upcoming update report.

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