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Research by HLIB
Buy (Maintain) – TP RM1.65

“Automotive market remains competitive"

DRB reported core PATMI RM84.2m for 1QFY24, below our expectation (22%) but within consensus (25%). We expect FY24 performance to leverage on Proton, CTRM, Aviation services and Bank Muamalat’s contribution. Proton has recently launched the new sedan S70 model and expected to launch facelifts for X70 and X50 models in 2024 and introduce an EV model in 2025. However, the automotive market remains competitive. We maintain BUY on DRB with a lowered TP of RM1.65 (from RM2.00), based on 20% discount to SOP: RM2.04.

Analyst:
Daniel Wong
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$KLSE-DRBHCOM
Research by HLIB
Buy (Maintain) – TP RM1.65

“Automotive market remains competitive"

DRB reported core PATMI RM84.2m for 1QFY24, below our expectation (22%) but within consensus (25%). We expect FY24 performance to leverage on Proton, CTRM, Aviation services and Bank Muamalat’s contribution. Proton has recently launched the new sedan S70 model and expected to launch facelifts for X70 and X50 models in 2024 and introduce an EV model in 2025. However, the automotive market remains competitive. We maintain BUY on DRB with a lowered TP of RM1.65 (from RM2.00), based on 20% discount to SOP: RM2.04.

Analyst:
Daniel Wong
kkwong@hlib.hongleong.com.my