Stock Name: UMW
Company Name: UMW HOLDINGS BHD
Research House: AMMB
Company Name: UMW HOLDINGS BHD
Research House: AMMB
AmResearch is in favour of automotive stock, APM Automotive Holdings Bhd, and has recommended a "buy" call and a fair value of RM7 per share.
"We like APM for its role in Tan Chong Motor (TCM) group's regionalexpansion, increased localisation and influx of foreign marques into the country," it said in a research note today.
AmResearch also maintained a "hold" call on TCM with a fair value of RM5 per share and UMW Holdings Bhd with a fair value of RM7.40 per share.
However, the research house maintained its "neutral" call on the automotive sector as margins were expected to be crimped by potentially higher completely knock-down kit prices and a weaker ringgit versus yen.
"We estimate every one per cent strengthening of the yen will hit TCM and UMW's bottomline by between two and three per cent as both companies import 30-40 per cent of their raw materials in yen and the remaining in US dollars," it added. -- Bernama
"We like APM for its role in Tan Chong Motor (TCM) group's regionalexpansion, increased localisation and influx of foreign marques into the country," it said in a research note today.
AmResearch also maintained a "hold" call on TCM with a fair value of RM5 per share and UMW Holdings Bhd with a fair value of RM7.40 per share.
However, the research house maintained its "neutral" call on the automotive sector as margins were expected to be crimped by potentially higher completely knock-down kit prices and a weaker ringgit versus yen.
"We estimate every one per cent strengthening of the yen will hit TCM and UMW's bottomline by between two and three per cent as both companies import 30-40 per cent of their raw materials in yen and the remaining in US dollars," it added. -- Bernama
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