Stock Name: PROTON
Company Name: PROTON HOLDINGS BHD
Research House: CIMB
KUALA LUMPUR: CIMB Equities Research is maintaining its Neutral call on PROTON HOLDINGS BHD [] with an unchanged target price of RM4.50 based on a 10% premium over Proton's historical P/NTA of 0.5x.
It said on Wednesday, March 2 that Proton's move to sign an MoU with Nissan Motor Co which could pave the way for the use of Nissan's platform and powertrain 'is a positive surprise to us'.
CIMB Research said it suspects that Proton's global entry car, Proton Emas, could be the basis for this partnership.
Apart from reducing Proton's product development costs, the tie-up could speed up the rollout of the new model, it said.
'But we do not expect the tie-up to yield immediate earnings as the global small car is only expected to be rolled out in 2012, at the earliest.
'From now until then, concerns over Lotus's turnaround exercise are likely to prevail. We maintain our NEUTRAL call, pending further details from management on the non-binding MOU,' it said.
Company Name: PROTON HOLDINGS BHD
Research House: CIMB
KUALA LUMPUR: CIMB Equities Research is maintaining its Neutral call on PROTON HOLDINGS BHD [] with an unchanged target price of RM4.50 based on a 10% premium over Proton's historical P/NTA of 0.5x.
It said on Wednesday, March 2 that Proton's move to sign an MoU with Nissan Motor Co which could pave the way for the use of Nissan's platform and powertrain 'is a positive surprise to us'.
CIMB Research said it suspects that Proton's global entry car, Proton Emas, could be the basis for this partnership.
Apart from reducing Proton's product development costs, the tie-up could speed up the rollout of the new model, it said.
'But we do not expect the tie-up to yield immediate earnings as the global small car is only expected to be rolled out in 2012, at the earliest.
'From now until then, concerns over Lotus's turnaround exercise are likely to prevail. We maintain our NEUTRAL call, pending further details from management on the non-binding MOU,' it said.
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