Bursa Alert
Global Market
NewsAffin Research maintains Underweight on Malaysian automobile sector
Page 1 of 1
Affin Research maintains Underweight on Malaysian automobile sector
by hlk Thu 09 Jan 2014, 12:48
KUALA LUMPUR: Affin Investment Research is maintaining its Underweight outlook on the Malaysian automotive sector due to the lack of earnings catalysts.
It said on Wednesday it expects a challenging operating landscape over the next few years as autoplayers will continue to vie or maintain its market share as total industry vehicles TIV growth moderates to 2%-3% annually against a backdrop of high penetration and maturity.
“Importantly, intensifying competition may also see operating margins come under pressure and the absence of a stronger Ringgit vis-à-vis Yen and/ or US$ (to alleviate cost pressures) suggests little scope for potential earnings upgrade in the near term.
“Top pick: MBM (BUY; RM4.07 price target) for its well executed vertical expansion, and attractive valuations,” it said.
It said on Wednesday it expects a challenging operating landscape over the next few years as autoplayers will continue to vie or maintain its market share as total industry vehicles TIV growth moderates to 2%-3% annually against a backdrop of high penetration and maturity.
“Importantly, intensifying competition may also see operating margins come under pressure and the absence of a stronger Ringgit vis-à-vis Yen and/ or US$ (to alleviate cost pressures) suggests little scope for potential earnings upgrade in the near term.
“Top pick: MBM (BUY; RM4.07 price target) for its well executed vertical expansion, and attractive valuations,” it said.
hlk- Moderator
- Posts : 19013 Credits : 45112 Reputation : 1120
Join date : 2009-11-14
Location : Malaysia
Similar topics» RHB Research maintains underweight on banking sector
» RHB Research maintains Underweight on semicon sector
» CIMB Research maintains Underweight on banking sector
» Affin IB Research maintains Neutral on Automotive sector
» Affin IB Research maintains Overweight on Tech sector as Inari, Unisem shine
» RHB Research maintains Underweight on semicon sector
» CIMB Research maintains Underweight on banking sector
» Affin IB Research maintains Neutral on Automotive sector
» Affin IB Research maintains Overweight on Tech sector as Inari, Unisem shine
Page 1 of 1
Permissions in this forum:
You cannot reply to topics in this forum