CGS-CIMB analyst Andrea Choong reiterated a Buy rating on Credit Bureau Asia Limited (TCU – Research Report) on February 25 and set a price target of S$1.30.
Andrea Choong has given her Buy rating due to a combination of factors that highlight the potential for Credit Bureau Asia Limited’s growth. Despite the company’s 2H24 PATMI being slightly below expectations due to increased operational expenses, the overall revenue growth was robust across both financial and non-financial segments. This growth was driven by sustained demand for employment checks and increased global demand for credit risk management solutions.
Furthermore, the company’s strategic position in the market is bolstered by improving regional investment sentiment, which could enhance credit enquiries. Although there are some challenges, such as higher staff costs and stable losses from its Myanmar joint venture, the company’s focus on potential acquisitions and the expected rise in regional trade activity provide a positive outlook. The reiteration of an Add rating with a target price of S$1.30 reflects confidence in the company’s ability to capitalize on these opportunities, despite the potential risks of global financial market volatility.