Published: Thursday March 21, 2013 MYT 8:57:00 AM
CIMB Research maintains Overweight on UMW, Trading Buy on DRB-Hicom
KUALA LUMPUR: CIMB Equities Research remains Overweight on the automobile sector, with UMW staying as its top pick.
The research house said on Thursday DRB-Hicom remains a Trading Buy as it goes through the restructuring pains of absorbing Proton.
“Tan Chong Motor Holdings is still a Neutral as the positives are already priced in. Share price drivers for the sector come from the Asean integration which will unlock economies of scale as well as lower input costs,” it said.
CIMB Research said February's total industry vehicle (TIV) sales came in at 44,976 units, up 2.9% on-year.
Despite the short working month because of the Chinese New Year holidays, strong on-year growth in the non-national car segment supported the overall numbers.
February's industry vehicle sales were in line with its expectations.
However, it expects unit sales to end the year flat because of industry saturation.
CIMB Research said growth of the non-national car segment will continue to be a key driver.