Stock Name: PROTON
Company Name: PROTON HOLDINGS BHD
Proton Holdings Bhd
(Oct 4, RM2.64)
Maintain neutral at RM2.65 with target price of RM2.70: The media has highlighted that Proton has plans to build electric vehicles (EV) in the C (1,300 to 1,500cc) and A (below 1,000cc) segments. Recently, it handed over eight EVs to the government for testing purposes under the fleet testing vehicle (FTV) programme. The models comprise the Saga plug-in EV and the Exora REEV (range extender electric vehicles).
The programme will run for 12 months, serving as a platform for Proton to accumulate technical and consumer data in its quest to improve the technology, design and development of the vehicles. The findings from the trial will be embedded in Proton's plan to commercialise the vehicles. Under the FTV,'' about 250 EVs will be given to the government in phases for fleet testing by the end of 2011 or early 2012. The initial plan was to commercially produce the eco-mobility advance solution by 2012 as its first global car.
Proton and the Innovation Institute of Malaysia (AIM) have signed a memorandum of understanding to work together to accelerate the development and commercialisation of innovative products and advanced technology in the automotive sector.
AIM is a statutory body under the Agensi Inovasi Malaysia Act 2010 to formulate strategies to enhance the national innovation ecosystem and create new-wave wealth from innovation.
We view this as a positive development for Proton in line with its strategy to become a global vehicle manufacturer and the country's commitment to reduce greenhouse gas emission by 40% in 2020.
Nonetheless, given the uncertain global macroeconomic outlook and Proton's high expenses at Lotus Group, we reiterate our 'neutral' recommendation. Our target price stays at RM2.70 based on industry peers' price-earnings ratio of eight times with FY12F earnings and price-to-net tangible assets of 0.4 times. ' MIDF Research, Oct 4
This article appeared in The Edge Financial Daily, October 5, 2011.
Company Name: PROTON HOLDINGS BHD
| Research House: MIDF | Price Call: HOLD | Target Price: 2.70 |
Proton Holdings Bhd
(Oct 4, RM2.64)
Maintain neutral at RM2.65 with target price of RM2.70: The media has highlighted that Proton has plans to build electric vehicles (EV) in the C (1,300 to 1,500cc) and A (below 1,000cc) segments. Recently, it handed over eight EVs to the government for testing purposes under the fleet testing vehicle (FTV) programme. The models comprise the Saga plug-in EV and the Exora REEV (range extender electric vehicles).
The programme will run for 12 months, serving as a platform for Proton to accumulate technical and consumer data in its quest to improve the technology, design and development of the vehicles. The findings from the trial will be embedded in Proton's plan to commercialise the vehicles. Under the FTV,'' about 250 EVs will be given to the government in phases for fleet testing by the end of 2011 or early 2012. The initial plan was to commercially produce the eco-mobility advance solution by 2012 as its first global car.
Proton and the Innovation Institute of Malaysia (AIM) have signed a memorandum of understanding to work together to accelerate the development and commercialisation of innovative products and advanced technology in the automotive sector.
AIM is a statutory body under the Agensi Inovasi Malaysia Act 2010 to formulate strategies to enhance the national innovation ecosystem and create new-wave wealth from innovation.
We view this as a positive development for Proton in line with its strategy to become a global vehicle manufacturer and the country's commitment to reduce greenhouse gas emission by 40% in 2020.
Nonetheless, given the uncertain global macroeconomic outlook and Proton's high expenses at Lotus Group, we reiterate our 'neutral' recommendation. Our target price stays at RM2.70 based on industry peers' price-earnings ratio of eight times with FY12F earnings and price-to-net tangible assets of 0.4 times. ' MIDF Research, Oct 4
This article appeared in The Edge Financial Daily, October 5, 2011.
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