Tuesday, September 28

MBM Resources favoured for deep value stake in Perodua

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MBM Resources is favoured by analysts for the group’s deep value in Perodua as the manufacturer continues to record stronger sales. — Bernama photo

KUCHING: MBM Resources Bhd (MBM Resources) is favoured by analysts for the group’s deep value in Perodua as the manufacturer continues to record stronger sales.

According to the research arm of Kenanga Investment Bank Bhd (Kenanga Research), Perodua continued to record stronger sales, with a market share of 43 per cent, premised on the higher delivery of all-new Myvi (bookings at 160,000, with circa 140,000 units delivered), and with further boost from the all-new Perodua ARUZ (bookings at 20,000 units, 9,800 delivered).

“Perodua has surpassed its 2018 target and targeting a stronger year in 2019 at 231,000 unit sales (up 1.7 per cent),” Kenanga Research said.

“We like MBM Resources for its deep value stake in 22.58 per cent-owned Perodua and dual-income streams as the largest Perodua dealer and from its manufacturing division as a parts supplier for Perodua as well as other popular marques.”

Meanwhile, Affin Hwang Investment Bank Bhd (Affin Hwang Capital) highlighted on MBM Resources’ proposal to dispose of a 22 per cent stake in Hino (from 42 per cent) for an estimated RM74 million.

“The proposed disposal is expected to be completed by the third quarter of 2019 (3Q19) and the proceeds would likely be used to pare down its borrowings of RM55 million, we believe.

“Post-disposal, we estimate that contribution from the remaining 20 per cent stake in Hino would contribute less than five per cent to MBM Resources’ bottom-line,” the research firm said.