Stock Name: PROTON
Company Name: PROTON HOLDINGS BHD
Research House: AMMB
KUALA LUMPUR: AmResearch reiterates its BUY rating on Proton Holdings (Proton) and raised its fair value (FV) to RM6.30/share from RM5.50/share previously. It said on Wednesday, April 7 the higher FV followed its upward revisions to its adjusted NTA projection - to factor in market value of Proton's Shah Alam assets. "Our valuation remains pegged to 0.8x FY11F adjusted NTA - which now stands at RM7.70/share," it said. AmResearch said its channel checks suggested possibilities of foreign carmakers taking up spare capacity and simultaneously, striking a strategic alliance with Proton. "We understand that Proton is in talks with a third OEM namely Mitsubishi, besides Renault and VW currently. "Negotiations with Mitsubishi goes beyond model specific developments and platform sharing that was agreed upon earlier," it added. Proton's manufacturing assets have turned increasingly strategic following growing interest by foreign carmakers to set up assembly operations in the country -and recent newsflows suggests VW is looking to finalise plans for a local assembly plant by end of 1H10. AmResearch said additionally, the Government's move to lift a freeze on manufacturing licenses for luxury passenger vehicles with engine capacities of 1.8 litres and above should attract interest from luxury makes in the country.
Company Name: PROTON HOLDINGS BHD
Research House: AMMB
KUALA LUMPUR: AmResearch reiterates its BUY rating on Proton Holdings (Proton) and raised its fair value (FV) to RM6.30/share from RM5.50/share previously. It said on Wednesday, April 7 the higher FV followed its upward revisions to its adjusted NTA projection - to factor in market value of Proton's Shah Alam assets. "Our valuation remains pegged to 0.8x FY11F adjusted NTA - which now stands at RM7.70/share," it said. AmResearch said its channel checks suggested possibilities of foreign carmakers taking up spare capacity and simultaneously, striking a strategic alliance with Proton. "We understand that Proton is in talks with a third OEM namely Mitsubishi, besides Renault and VW currently. "Negotiations with Mitsubishi goes beyond model specific developments and platform sharing that was agreed upon earlier," it added. Proton's manufacturing assets have turned increasingly strategic following growing interest by foreign carmakers to set up assembly operations in the country -and recent newsflows suggests VW is looking to finalise plans for a local assembly plant by end of 1H10. AmResearch said additionally, the Government's move to lift a freeze on manufacturing licenses for luxury passenger vehicles with engine capacities of 1.8 litres and above should attract interest from luxury makes in the country.
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