Tan Chong International is a distributor of motor and heavy commercial vehicles across various countries in Asia. The company is the exclusive distributor for Nissan motor vehicles in Singapore and also the exclusive distributor for Subaru motor vehicles in Singapore, Hong Kong, Taiwan, certain other ASEAN countries and certain provinces in PRC. Given majority family ownership and low trading liquidity, the company has been ignored by the market with no sell-side coverage. Trading at the current 0.4x P/B, we believe the company is significantly undervalued for the following reasons:
- Solid book assets with ...