AUTOMOTIVE
[%IzHC%] 
Research by Kenanga
Neutral

“Malaysia Autoshow 2024: EV the Way Forward”

We attended the Malaysia Autoshow 2024 during which leading global automotive companies unveiled their latest innovation, particularly, next-generation electric vehicles (EV), in sync with the aspiration of the National Automotive Policy (NAP 2020). We believe the demand for EV will be buoyed by droves of new EV models and the recent reduction in the road tax for EV. We raise our CY24 total industry volume (TIV) projection by 4% to 740k units (from 710k). We are also taking a more bullish view on Perodua’s D66b and EV model slated for launching next year. We believe while it will be business as usual for the affordable segment, fuel subsidy rationalisation will likely hurt the demand for mid-market models, giving rise to a two-speed automotive market locally in CY24. Our sector top pick is MBMR (OP; TP: RM6.30), which is a good proxy to the affordable and fuel-efficient Perodua brand. It also offers an attractive dividend yield of about 7%.

Analyst(s):
Wan Mustaqim Bin Wan Ab Aziz  
[%pflr%]

AUTOMOTIVE
$KLSE-MBMR 
Research by Kenanga
Neutral

“Malaysia Autoshow 2024: EV the Way Forward”

We attended the Malaysia Autoshow 2024 during which leading global automotive companies unveiled their latest innovation, particularly, next-generation electric vehicles (EV), in sync with the aspiration of the National Automotive Policy (NAP 2020). We believe the demand for EV will be buoyed by droves of new EV models and the recent reduction in the road tax for EV. We raise our CY24 total industry volume (TIV) projection by 4% to 740k units (from 710k). We are also taking a more bullish view on Perodua’s D66b and EV model slated for launching next year. We believe while it will be business as usual for the affordable segment, fuel subsidy rationalisation will likely hurt the demand for mid-market models, giving rise to a two-speed automotive market locally in CY24. Our sector top pick is MBMR (OP; TP: RM6.30), which is a good proxy to the affordable and fuel-efficient Perodua brand. It also offers an attractive dividend yield of about 7%.

Analyst(s):
Wan Mustaqim Bin Wan Ab Aziz  
wanmustaqim@kenanga.com.my