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Tuesday, March 19, 2013

UOB positive on MBM’s outlook


PETALING JAYA: An expected ramp-up of alloy wheel production in the near term is expected to bode well for automotive parts manufacturerMBM Resources Bhd, according to UOB KayHian.
“We estimated that distribution of Perodua vehicles contribute 37% of MBM’s 2012 group revenues, followed by Volkswagen (VW) at 21% and Daihatsu-cum-Hino. In addition, MBM sells safety equipment for vehicles via its wholly-owned subsidiary, Hirotako (12% of group revenues),” said UOB in a recent automotive report.
The research house also noted that growing sales of VW cars in Malaysia would benefit MBM.
“VW’s total unit sales have been gaining momentum on the back of more aggressive marketing, with November and December 2012 recording the two highest monthly sales in 2012 at 1,518 and 1,810 units respectively.
“Although this has fallen 54% month-on-month to 835 units in January 2013, it is still a whopping 90% year-on-year jump,” it said.

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