DRB-HICOM Bhd is expected to extract synergies with the Proton group as the former has large exposure in the automotive components and parts segments.
In a note today, Hong Leong Investment Bank Research (HLIB Research) said DRB-HICOM's other units -- Bank Muamalat and Pos Malaysia -- would also provide support to Proton.
"We are confident that DRB-HICOM has already pre-planned the roadmap for Proton even before the acquisition in early this year or else it would not have launched several rounds of bids to acquire Proton," it said.
HLIB Research said DRB-HICOM would potentially take advantage of its strong ties with the Volkswagen Group (including Audi), Honda, Suzuki and Mercedes, to improve the national brand quality and perception of Proton.
"We concur with DRB-HICOM's initiative on Proton to tap into foreign expertise to produce high quality and well accepted cars and achieving the 'Asean Car' target.
"There is a need to rebrand Proton models and improve consumers' perceptions on the national marque, which is always second to Perodua," it said.
HLIB Research has maintained its 'buy' call on Proton with an unchanged target price of RM3.43. -- Bernama
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