Published: Thursday July 12, 2012 MYT 8:12:00 AM
Updated: Thursday July 12, 2012 MYT 11:14:12 AM
RHB Research sees MBM Resources on solid growth trajectory
“We reiterate our Outperform call on the stock and lift our fair value estimate to RM4.20 (from RM3.70) after rolling forward our base year to 2013 and ascribing a 10x target PER (unchanged),” it said on Thursday.
RHB Research said Perodua sales have begun to show solid signs of recovery, recording a 23.1% on-month improvement in May and remains on track to meet its 2012 sales target of 188,000 units.
The research house said the recovery in the sales of national vehicles will benefit Hirotako, as will the implementation of regulations requiring all new cars sold locally to be fitted with dual airbags.
“However, despite the growth in volumes, intense pressure from customers to lower prices has resulted in a disproportionately slower growth in net earnings,” it said.