Automotive (NEUTRAL) - Perodua to Produce Sedan?

Date: 
2012-08-09
Firm: 
HLG
Stock: 
Price Target: 
3.43
Price Call: 
BUY
Last Price: 
1.00
Upside/Downside: 
+2.43 (243.00%)

Automotive (NEUTRAL)

Perodua to Produce Sedan?

  • According to Managing Director Datuk Aminar Rashid Salleh, Perodua have started a joint feasibility study with partners Daihatsu and Mitsubishi to produce sedan cars.
  • The news on Perodua’s intention to produce sedan cars has emerged for quite some time.
  • Nevertheless, we do not expect the plan to materialize at least for another 2-3 years, since the plan is still at preliminary stage and depending on government’s approval.
  • Should Perodua commence with the plan in penetrating the sedan car market, it is likely to capture further market share in Malaysia at the expense of Proton (DRBHCOM).
  • Car parts and components manufacturers are likely to enjoy further sales from Perodua new car development.
  • Forecasts remained unchanged pending further concrete development by Perodua.
  • We maintain NEUTRAL on the sector. Top pick: DRBHCOM with BUY call and TP of RM3.43.

Source: Hong Leong Investment Bank Research - 9 August 2012

Discussions
1 person likes this. Showing 1 of 1 comments

herbert456

Excellent!! .... Another rally coming its way, GO! DRBHICOM, GO!!

2012-08-09 11:25

Post a Comment