Stock Name: TCHONG
Company Name: TAN CHONG MOTOR HOLDINGS BHD
Stock Name: DRBHCOM
Company Name: DRB-HICOM BHD
Kenanga Research has maintained a 'neutral' call on the automotive industry and retains its 2013 Total Industry
Volume's (TIV) forecast of 641,560 units.
The research house said April's total vehicle sales month-on-month slid by nine per cent due to consumers' wait-and-see approach in the uncertainty surrounding the recent general election.
However, year-on-year total vehicle sales charted a year-on-year growth of 10 per cent to 52,489 units with sales of passenger vehicles increasing by 10 per cent to 45,564 units while commercial vehicles posted increased sales of nine per cent to 6,925 units.
"We look forward to the unveiling of the revised National Automotive Policy which will focus on positioning the country as a regional hub for hybrid vehicles and energy-efficient vehicles.
"The new policy would also look into gradually eliminating structural issues such as high duties, high selling prices, non-tariff barriers, fuel subsidies and other political considerations," it said in a research note today.
Meanwhile, RHB Research in its note said the expected sales decline in April was not as severe as expected.
"With the general elections out of the way and expectations for continuity and stability of policies affecting the automotive industry, we expect auto sales to normalise in the months ahead as buyers return to the market helped by low interest rates and an attractive pipeline of new models," it added.
The research house said following the Barisan Nasional's victory in the general elections, it expects consumer expectations for a significant reduction in car prices to gradually moderate.
RHB Research remains neutral on the automotive industry and favours shares of companies like Tan Chong Motor Holdings Bhd with a target price of RM7.50 and DRB-HICOM Bhd with a target price of RM3.30.
On the other hand, HLIB Research has maintained an "overweight" call for the industry and favours shares like DRB-HICOM Bhd with a target price of RM3.36.
The research house said the slowdown in the Malaysian economy, global automotive supply chain disruption and sudden jump in fuel prices and interest rate will post a risk to the industry.-- Bernama
Company Name: TAN CHONG MOTOR HOLDINGS BHD
| Research House: RHB | Price Call: HOLD | Target Price: 7.50 |
Stock Name: DRBHCOM
Company Name: DRB-HICOM BHD
| Research House: RHB | Price Call: HOLD | Target Price: 3.30 |
Kenanga Research has maintained a 'neutral' call on the automotive industry and retains its 2013 Total Industry
Volume's (TIV) forecast of 641,560 units.
The research house said April's total vehicle sales month-on-month slid by nine per cent due to consumers' wait-and-see approach in the uncertainty surrounding the recent general election.
However, year-on-year total vehicle sales charted a year-on-year growth of 10 per cent to 52,489 units with sales of passenger vehicles increasing by 10 per cent to 45,564 units while commercial vehicles posted increased sales of nine per cent to 6,925 units.
"We look forward to the unveiling of the revised National Automotive Policy which will focus on positioning the country as a regional hub for hybrid vehicles and energy-efficient vehicles.
"The new policy would also look into gradually eliminating structural issues such as high duties, high selling prices, non-tariff barriers, fuel subsidies and other political considerations," it said in a research note today.
Meanwhile, RHB Research in its note said the expected sales decline in April was not as severe as expected.
"With the general elections out of the way and expectations for continuity and stability of policies affecting the automotive industry, we expect auto sales to normalise in the months ahead as buyers return to the market helped by low interest rates and an attractive pipeline of new models," it added.
The research house said following the Barisan Nasional's victory in the general elections, it expects consumer expectations for a significant reduction in car prices to gradually moderate.
RHB Research remains neutral on the automotive industry and favours shares of companies like Tan Chong Motor Holdings Bhd with a target price of RM7.50 and DRB-HICOM Bhd with a target price of RM3.30.
On the other hand, HLIB Research has maintained an "overweight" call for the industry and favours shares like DRB-HICOM Bhd with a target price of RM3.36.
The research house said the slowdown in the Malaysian economy, global automotive supply chain disruption and sudden jump in fuel prices and interest rate will post a risk to the industry.-- Bernama
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