Auto earnings to recover amidst top-line growth, strength in ringgit
KUALA LUMPUR: The auto sector earnings have been projected by analysts to recover amidst top-line growth and the sustained strength of the ringgit, with stronger sales in the coming months to be supported by new model launches, among other factors.
Affin Hwang Investment Bank Bhd (AffinHwang Capital), which maintained ‘overweight’ on the auto and autoparts sector, is expecting “sector earnings to recover amidst top-line growth and the sustained strength of the ringgit”.
Looking at Perodua, AffinHwang Capital believed that with the Myvi production returning to normalcy, sales of Malaysia’s best-selling car brand for the first 10 months of 2018 (10M18) of 187,700 units is likely to exceed the automotive KUALA LUMPUR: United Overseas Bank (Malaysia) Bhd (UOB Malaysia) has launched its digital security token, UOB Mighty Secure, to provide customers greater security and convenience for online and mobile banking transactions.
Customers can now use their smartphones as their security token with the digital security token function on the UOB Mighty app1 to authenticate their personal internet and mobile banking transactions.
UOB Malaysia managing director and country head of personal financial services, Ronnie Lim, said that the UOB Mighty Secure is designed to reflect the changing lifestyle needs of its customers and to provide them with greater convenience, especially when they are travelling. player’s full-year 2018 target of 209,000 units.
“Meanwhile, Proton clocked in 5,100 units in October 18 as buyers were attracted to the zero-Sales and Service Tax (SST) pricing for Proton car models,” the research firm said.
“Despite the strong bookings for Proton’s maiden SUV model (X70), coupled with year-end promotion and rebates, we think 2018 will likely see the sixth year of decline for Proton car sales, considering Proton’s 10M18 only achieved 54,300 units.”
On non-national carmakers, AffinHwang Capital highlighted that Mazda remained as the star performer for the fourth consecutive month, achieving a historical sales high of 1,700 units in October 18, driven by continued demand for its flagship model, the CX-5, and facelifted models (CX-3 and M6).
“We believe Mazda’s sales momentum will remain robust, considering the order backlog of 5,000 units.”
In terms of sector picks, the research firm preferred Toyota (UMW Holdings Bhd (UMW)), Mazda (Bermaz Auto Bhd) and Perodua (UMW and MBM Resources Bhd (MBM)).
As for the research arm of Kenanga Investment Bank Bhd (Kenanga Research), its neutral rating on the automotive sector was retained with MBM as its sector top-pick.
Kenanga Research said that it expected “stronger sales in the coming months, supported by the new model launches, usual yearend promotion and an upcoming special event.
UOB Malaysia launches digital security token UOB Mighty Secure