KUCHING: EP Manufacturing Bhd’s (EPMB) acquisition of the MEX Highway concession is still uncertain but business still looks positive from higher revenue from Perusahaan otomobil Kedua Sdn Bhd (Perodua).
According to OSK Research Sdn Bhd (OSK Research) in its research report yesterday, EPMB’s proposed acquisition of the MEX Highway concession from Maju Holdings Bhd has yet to be approved by the government.
Given the controversial nature of the transaction, it is likely that the government would only announce its approval after the upcoming general election, followed by a potential toll hike, noted the research report.
However, EPMB’s strategy to seek more businesses from Perodua has proven to be the correct strategy as the higher revenue from Perodua offset the declining revenue from Proton due to the latter’s low vehicle sales, which OSK Research foresaw to likely persist into 2013 given the lack of key model launches that would spur buyer demand amidst intensifying competition.