TA Securities ups UMW to buy

TA Securities has raised its call on Malaysia's autos-to-energy services firm UMW Holdings Bhd to "buy", citing stronger sales growth and a brighter outlook for the auto and heavy equipment business.

In a research note on Wednesday, TA Securities also hiked its target price for UMW to RM8.54 per share from RM7.01.

"We expect UMW's CY12 vehicle sales to outperform the industry, implying a steady rise in market share ahead," the broker said.

TA said key factors that will drive growth are the launch of new car models (Avanza, Lexus GS, Prius and Camry) in June, and the normalisation of supply chain after last year's bottleneck.

TA added that UMW could benefit from the political reforms in Myanmar as it supplies equipment for the country's construction and jade mining industry.

"Potential lifting of economic sanction could boost demand for equipment in the underinvested jade mining sector," the broker said. -- Reuters

maybe their other sectors to benefit the price action not the current issue with loan disbursement