@flippiwippi Their "at one point" is probably too late already. GM is spending billions in R&D to come up with EV cars. Apple is in talks to make EV cars. Many companies have already began production of EV cars. Perodua? By the time they come up with an EV car, the industry is prolly dominated already. Whats the point then?
Someone needs to call up their Investor Relation and ask them to do something. Malaysian companies always lack innovation. Cant come up with new things at all.
They don't have to be pioneer. Once eV mature, they could buy an eV platform without spending billions of rnd. And then sell at competitive price like now.
Perodua didn't invent the car. But the roads full of myvi. So not necessarily they need to be the first in eV as well
Ditanya mengenai pembangunan kereta elektrik (EV), Zainal Abidin berkata, Perodua akan melihat objektifnya dari segi alam sekitar atau teknologi terlebih dahulu berdasarkan perkembangan sektor automotif negara.
Beliau menjelaskan, perkara itu akan dibincangkan dengan kerajaan memandangkan ia memerlukan ekosistem khusus serta hala tuju yang betul
MBMR is the perfect share to buy for a value investor as it has:-
1. Consistent and strong earnings for the past decades even during the challenging year 2020; 2. 22.6% holding in Perodua which has been the Malaysian market leader for a decade now and there is little to no risk of it being overtaken by its competitors especially in the RM20k-70k market segment. High sales volume also equate to recurrent income stream from auto servicing and accessories sales (Proton-Geely has potential but it still can't even get the most basic things such as spare parts, after sales and car production in order. Anyway the X70/X50 SUVs are in a different market segment from Perodua and do not take away Perodua sales) Must also be noted that after Toyota had fully acquired Daihatsu in Japan, this has allowed Daihatsu, and indirectly Perodua, access to Toyota's latest techs including their class leading hybrid tech and upcoming EV tech. The DNGA platform (which is developed by Daihatsu on top of the TNGA platform) used in the Toyota Raize, Daihatsu Rocky and now Perodua Ativa siblings is a great example of this mutually beneficial synergistic relationship. The future of Perodua is bright!; 3. 51% holding in Autoliv Hirotako which is the Malaysian market leader in manufacturing safety restraint systems (seat belts, airbags and steering wheels); 4. Not to be overlooked, it also owns Daihatsu distributorship which mainly sells commercial vehicles, and Federal Auto Holding Bhd, which is one of the most established Volvo and Volkswagen dealerships in Malaysia. These are profitable subsidiaries which provides a diversified income stream to MBMR; and 5. P.E. ratio of 8x (lowest among UMW (16.2x), Bauto (13.4x) and loss making TCHONG & DRBHICOM), Net cash position of 66.2sen/share and a competent management team that has implemented a 60% dividend payout policy.
Having said that, I think that currently MBMR is more suited for long term investing and not short term goreng. Unless the Perodua Ativa gets record breaking sales these coming months (which it might, still has potential), I don't think MBMR will move up much in the next few quarters. The global automotive chip shortage issue will limit the production of Perodua, Volvo and VW cars in the short term, which in turn directly limits the profits of MBMR. Nevertheless, based on Hong Leong's analyst report, MBMR's management remains confident that Perodua will be able to overcome this issue and still hit its target of 240k sales for 2021, and the management of Perodua has a long track record of hitting or surpassing its sales target.
As a long term investor, the fact that no big kaki come goreng this share means I have more time to accumulate funds to buy more of MBMR while enjoying around 5% dividend yield per annum (much higher than any fixed income asset can offer right now).
I am using Hong Leong E-Broking and have received my dividend payment on 30th March 2021.
Indeed the Q1 sales figures reported by Perodua is truly incredible and with 14,574 bookings for the Ativa to-date, MBMR is basically guaranteed to do well for the whole financial year! Only regret now is not buying more lah. Tomorrow should be a super green day for MBMR!
@Valueinvesting They are churning out about 4,000 Ativa a month, at this rate by end of June there will be more on the road than X50 although it had a four month start. That's before we even talk about after-sales service. I decided to take profit on DRB and buy more MBMR--besides capital gains you also have steady dividends.
Another interesting counter to watch is Bermaz Auto. They did a good job with Mazda marque and now just secured Kia. Kia had been horribly managed by Naza up to this, really spoil the brand. Good cars, excellent value and suitable for Malaysian tastes but their after-sale service was horrible. Got potential there.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
keithtrade
82 posts
Posted by keithtrade > 2021-01-27 13:57 | Report Abuse
A real bargain at current price!