NST Online Business Times : latest
NST Online Business Times : latest |
| Analysts keep 'neutral' call on NAP Posted: 20 Jan 2014 06:56 PM PST KUALA LUMPUR: Kenanga Research and RHB Research remain neutral on the automotive industry as they believe the just announced National Automotive Policy (NAP) 2014 initiatives will take several years to come to fruition. In a sectorial update note, the research firm said the revised policy would have a mild impact on non-national car manufacturers given the Energy Efficient Vehicle know-how, which allows them to enjoy incentives for complete knocked down production in Malaysia. Kenanga Research also expects a challenging operating landscape given the high penetration rate and maturity of the market. It said Tan Chong Holdings Bhd stood as the only "buy" stock due to the strong Nissan franchise expansion and long-term regional growth story among others.
"The trickle-down impact to the auto parts industry will take time to materialise," said RHB Research. While domestic demand will stay resilient, it noted that intense market competition and increasingly price-sensitive consumers could impact margin. RHB Research retained its "buy" call on DRB-Hicom Bhd, Berjaya Auto Bhd and Tan Chong. As of 10.45 am, DRB-Hicom added two sen to RM2.79, Berjaya Auto eased three sen to RM1.82 and Tan Chong was flat at RM5.60. -- BERNAMA |
| 'DRB-HICOM a top pick in NAP play' Posted: 20 Jan 2014 07:05 PM PST KUALA LUMPUR: HwangDBS Research sees DRB-HICOM as a top stock pick for the automotive sector with a target price of RM3.50 given its with wide range of marques and the credible Proton turnaround plan. Following the announcement of the NAP 2014 yesterday, the EEV tax incentives for CKD models, new manufacturing licences, various grants/loans are some of the highlights. The NAP pledged gradual 20-30 per cent car price reduction by 2017, but with no review of the current high excise duties, while the GST to replace sales tax in 2015 may aid in lowering prices. According to the research house, Honda has the first mover advantage. |
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