KUALA LUMPUR: OSK Research has raised its target price for Tan Chong Motor Corp to RM4.26 as it retains its BUY call on the counter.

The research house said on Friday, March 12 the announcement of Tan Chong’s (TCM) foray into Cambodia by securing an exclusive distributorship came in much earlier than it had anticipated.

“We view this move positively given the relatively untapped nature of the Cambodian market where sales growth of new vehicles will likely be encouraging as the overall structure of the auto industry develops further.

“This leads us to upgrade our FY10-FY12 earnings forecast by 0.9% - 2% on the back of higher vehicles sales in the Cambodian market. Hence, our TP is raised to RM4.26 with our BUY call on the counter retained,” it said.