Top Story : Motor – Stronger rebound in 2010 Overweight
Sector Update:
Tan Chong - Fair value raised to RM5.26/share (from RM3.60 previously) Outperform
UMW - Fair value increased to RM7.52 (previously RM6.71) based on 16X PER Outperform (up from MP)
MBM - Fair value increased to RM5.04 (previously RM3.93) Outperform
Proton – Fair value is maintained at RM5.48 based on stripped down book value Outperform
♦ With Malaysia’s economic recovery gaining momentum, the motor sector is expected to pick up considerably on the back of: 1) increase in economic activities; 2) better business conditions and 3) improving consumer sentiment.
♦ Previously, due to the weak economy, we saw consumers’ preference shift towards more economical cars. However, with the economic recovery now gaining traction, we expect consumers to regain their spending power and demand for premium vehicles.
♦ The weakening US$ and JPY against RM in 2010 will likely lower the imported CKD kits costs given foreign part estimates of 35-40% and 60-70% for Perodua and Toyota cars respectively. YTD, we note that RM has appreciated by 6% against the greenback and is now trading at RM3.21/US$. Reiterate Overweight.
RHB Equity 360°(Motor, Pos, Sunway, LPI; Technical: KUB, E&O) - 12/04/2010
No comments:
Post a Comment