Posted by HYG > 2018-11-23 21:38 | Report Abuse

Good or bad news?

Posted by commonsense > 2018-11-24 10:06 | Report Abuse

Hi HYG,

MARC is making its assessment based on FY18 results and financial position of DRB. What they are saying is actually known already by most investors in the market.

I think they are still skeptical on Proton turnaround plan. To be fair to DRB, results of the turnaround plan can only be seen in 2019 when the new SUV is launch to the public.

I think the 2Q19 result (should be out next week) will still be negative for Proton even with the tax holiday period . We will still need to assess on management decision to absorb the SST from September (would mean that gross margin will drop by 3-4%). Based on the September car sales numbers, the strategy actually backfired as sales still drops vs august period (4,524 cars sold in Sept 18 vs 9,501 cars sold in Aug 18). For those that are invested in the company due to the potential turnaround of Proton, you need to be fair to DRB and give them at least another 6 months (or until 4Q19 is out) to see the result.

All in all, 2Q19 should be a bumper profit period due to the RM700mil gain in disposal of Alam Flora back in August. That being said, core business results would still be negative.

In terms of valuation, you can only value this company based on the book value method as core earnings is still negative. At a P/B of 0.6x it does look undervalue but take not this "value" can only be unlock if the company decides to sell/disposed of the assets as what they did with Alam Flora. If there is no disposal during Oct-Dec period, DRB would most probably record a negative result in 3Q19.

Feel free to comment if i might have miss out anything. Thanks

Posted by Cxg888 > 2018-11-24 19:08 | Report Abuse

http://www.klsescreener.com/v2/news/view/460908

Posted by Cxg888 > 2018-11-25 20:11 | Report Abuse

Gvm got good news for proton by X70 haha around two week 1212

Posted by BULL1000BEAR1000 > 2018-11-26 09:32 | Report Abuse

Good news ppl will buy Proton for more than 100k

Posted by bylkw2 > 2018-11-26 10:10 | Report Abuse

gg i hold it since X70 was announced to be brought in, n the price keeps on dropping

Posted by BULL1000BEAR1000 > 2018-11-26 10:17 | Report Abuse

Wrong strategy by little minion

Posted by dusti > 2018-11-26 10:21 | Report Abuse

What if prices release this week ?Are you ready to collect profit? Buy TODAY and good luck!!!!

Posted by BULL1000BEAR1000 > 2018-11-26 12:14 | Report Abuse

Main habis with wrong strategy

Posted by Cxg888 > 2018-11-26 12:38 | Report Abuse

Drb holding tp 203

Posted by Cxg888 > 2018-11-26 12:39 | Report Abuse

If can push back 2 tp can up 208

Posted by kieus7663 > 2018-11-26 13:22 | Report Abuse

Bull1000bear1000 , mind to share your strategy... and your portfolio also... I'm keen to learn

Posted by abc333 > 2018-11-26 15:34 | Report Abuse

relax , QR should be charming.

Posted by zidane > 2018-11-26 17:25 | Report Abuse

Nice one drb

Posted by Kim > 2018-11-26 18:26 | Report Abuse

Kim "Buy < 2.0" =) before back RM2.05 / 2.10 / 2.20 / 2.35.

23/11/2018 15:24

Nicely closed. Tomorrow can watch this one ..
Good Luck for us!

Posted by Cxg888 > 2018-11-27 08:55 | Report Abuse

Proton involvement in motorsports to benefit customers - http://www.theedgemarkets.com/article/proton-involvement-motorsports-benefit-customers (Share from StockHunter)

Posted by BULL1000BEAR1000 > 2018-11-27 09:34 | Report Abuse

Our economy is good. Ppl can easily afford 100k Proton

Posted by BULL1000BEAR1000 > 2018-11-27 09:36 | Report Abuse

Being cheated to buy expensive plastic and expensive tin milo as well

Posted by Cxg888 > 2018-11-28 11:44 | Report Abuse

Waiting Q2 is coming

Posted by kieus7663 > 2018-11-28 11:55 | Report Abuse

the earning report release by today?

Posted by Hoos3h > 2018-11-28 19:26 | Report Abuse

Nope tomorrow only release

Posted by kieus7663 > 2018-11-29 11:24 | Report Abuse

So report release by today ? Any live or roughly What time for the announcement ?

Posted by Cxg888 > 2018-11-29 12:33 | Report Abuse

After 5 pm

Posted by Kim > 2018-11-29 14:34 | Report Abuse

"IF".... QR good.. road to RM2.20 range in 1-2 weeks time open. Once 12/12 another round price will up due to x70 official announcement px. So my view RM2.30-2.50 for DRB coming soon.

My 2cts. Good luck!

Posted by 5354_ > 2018-11-29 14:48 | Report Abuse

QR still not out who pushed why can ah?

Posted by Kim > 2018-11-29 14:48 | Report Abuse

QR after 5 lah..

Posted by misscall99 > 2018-11-29 14:56 | Report Abuse

look like QR not good loh....the share keep drop

Posted by Ken Tang > 2018-11-29 15:20 | Report Abuse

hopefully the qr does not disappoint.

Posted by Ken Tang > 2018-11-29 15:21 | Report Abuse

epf disposed and bought back one weeks later.

Posted by kieus7663 > 2018-11-29 16:58 | Report Abuse

EPF damn smart... EPF = day trader.. just follow them buy and sell will do..

Posted by baluku123 > 2018-11-29 17:59 | Report Abuse

Yeah good result tp 3

Posted by freddiehero > 2018-11-29 18:11 | Report Abuse

1.0 on my way

Posted by Ken Tang > 2018-11-29 20:12 | Report Abuse

shitty qr

Posted by Data5000 > 2018-11-29 20:56 | Report Abuse

kim say can RM2.30-2.50 wow

Posted by Guardize > 2018-11-29 21:43 | Report Abuse

lost in qr already predicted ,because yoy got government grant . qoq is improved it show now is on the right path to turnaround profit plan.

Posted by Guardize > 2018-11-29 21:44 | Report Abuse

next 2qr will see the result. i think epf will buy back tomorrow

Posted by Cxg888 > 2018-11-29 23:56 | Report Abuse

This Q2 better before la continue support drb

Posted by Cxg888 > 2018-11-30 08:21 | Report Abuse

http://www.klsescreener.com/v2/news/view/463562

Posted by Cxg888 > 2018-11-30 08:22 | Report Abuse

http://www.klsescreener.com/v2/news/view/463502

Posted by commonsense > 2018-11-30 10:34 | Report Abuse

Proton revenue went up substantially (70%) compared to last year but mainly due to the positive effect of tax holiday. Expect Proton revenue to taper down in this quarter. All this is expected.

Positive catalyst will come from the potential demand from X70. Currently there is already more than 10,000 bookings for the SUV but we need to wait and see whether these bookings can be converted to firm orders by customers (still don't know the pricing of X70 yet).

As mentioned previously, the full turnaround effect of Proton (which would mean the turnaround of DRB Hicom) can only be seen in 2019 once the X70 is launched. So financial wise you can only see the effect in 4th quarter FY19 (period Jan - Mar 2019).

So those that are investing in the company for the potential turnaround need to wait for 4Q19 result to be out to see the full effect of the turnaround plan by Geely (result to be out end May). Proton still has licence to sell 2 other Geely car models but this is only expected to be launch in 2020 the earliest.

Those that would want an indirect exposure to Proton can buy either Pecca or MBMR. Which are both profitable companies.

Pecca is the main manufacturer for car leather seats in Malaysia. They might managed to clinch manufacturing contracts for the X70 once Proton decides to start manufacturing the vehicle in Malaysia next year (most probably mid of the year). Currently the company's domestic exposure is mainly driven by Perodua and Toyota sales. They also export their products overseas.

MBMR has always been the auto component manufacturer for Proton (via their subsidiary Hirotako Holdings where they manufacture the airbags, seatbelt etc). Currently both companies are still negotiating on the potential of MBMR supplying the alloy wheels for the X70 (still not finalise due to pricing issues ). MBMR is also a direct proxy to Perodua given it has a 22.6% interest in Perodua. Currently valuation is cheap at below 5.5x PE (2018 expected PAT of RM145mil. 9m PATAMI is already RM106mil). The company is also expected to launch their own SUV priced at between RM70k to RM80k (so not really a direct competitor to x70).

Good luck

Posted by Cxg888 > 2018-11-30 14:17 | Report Abuse

Next week come b 192

Posted by Kim > 2018-11-30 16:34 | Report Abuse

Cxg88 .. more than that.. just cool and hold..

Posted by organic > 2018-12-01 09:11 | Report Abuse

sure or not. want hold?

Posted by Cxg888 > 2018-12-01 11:09 | Report Abuse

This stork can hold la 192 normal price sia

Posted by Cxg888 > 2018-12-01 11:10 | Report Abuse

Waiting after 1212 mb got good news gve for drb by tax for x70

Posted by 5354_ > 2018-12-01 11:56 | Report Abuse

Even after Geely join DRB every qtr DRB suffer loss why EPF can push high-high? Some of those commenting here work for EPF/TH behind pushed DRB from 90 sen?

Posted by 5354_ > 2018-12-01 11:57 | Report Abuse

Will Sep'18 QR high sales repeat in Dec when tax holiday from 0% GST no more?

Posted by 5354_ > 2018-12-01 11:59 | Report Abuse

YOY sales drop even Proton sales increase why?
https://klse.i3investor.com/servlets/stk/fin/1619.jsp

Posted by Guardize > 2018-12-01 21:59 | Report Abuse

yoy revenue drop due to last year drb still 100% own proton. this year only 50.1% proton sales accounted to drb. read the qr carefull

Posted by Guardize > 2018-12-01 22:01 | Report Abuse

the lost is narrowed compare to last q. is a good sign for proton turn over plan.