MIDF Research maintains Neutral on Automotive sector

Business & Markets 2013
Written by theedgemalaysia.com
Monday, 20 May 2013 09:01
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KUALA LUMPUR (May 20): MIDF Research has maintained Neutral on
the Automotive sector after the annualised 4-month vehicle sales in April
stood at 630,459 units, which the research house said was in line with
both its and MAA’s full year forecasts of 637,500 and 640,000 units
respectively.
“At this juncture, we are maintaining our 2% growth target for 2013 TIV
forecast.
“We expect sales to normalize in the months ahead in view of the
upcoming revised National Automotive Policy (NAP),” it said in a note
Monday.
MIDF Research reiterated its Neutral recommendation on the sector.
“Within the automotive space, we have Buy recommendation on Tan
Chong with target prices of RM7.70 respectively. The Almera is proving
to be a strong factor to drive TCM’s earnings and share price valuation
moving forward.
“As for MBM, due to the recent run-up in its stock price, we are
downgrading our call to Neutral from Buy with target price of RM4.20
(under review). Meanwhile, we maintain Neutral on UMW (TP:
RM13.15),” it said.