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Research by TA
Sell - TP RM4.70

"Uncertain Outlook and Overvalued"

MBM Resources Berhad (MBM) conducted an analyst briefing yesterday following the release of its 2QFY24 results. Management remains cautiously optimistic about the outlook for 2025, as the automotive sector is navigating a complex landscape of regulatory changes, strategic shifts, and evolving market dynamics, which introduce considerable uncertainty. Despite this, as a proxy for Perodua, MBM will continue leveraging the company’s growth in 2024. However, we believe the share price has run ahead of its fundamentals and that most of the positive news have already reflected in the share price. Thus, we maintain a Sell rating on MBM, with an unchanged target price of RM4.70 per share, based on a CY25 PER of 7x.

Analyst:
Angeline Chin 
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$KLSE-MBMR
Research by TA
Sell - TP RM4.70

"Uncertain Outlook and Overvalued"

MBM Resources Berhad (MBM) conducted an analyst briefing yesterday following the release of its 2QFY24 results. Management remains cautiously optimistic about the outlook for 2025, as the automotive sector is navigating a complex landscape of regulatory changes, strategic shifts, and evolving market dynamics, which introduce considerable uncertainty. Despite this, as a proxy for Perodua, MBM will continue leveraging the company’s growth in 2024. However, we believe the share price has run ahead of its fundamentals and that most of the positive news have already reflected in the share price. Thus, we maintain a Sell rating on MBM, with an unchanged target price of RM4.70 per share, based on a CY25 PER of 7x.

Analyst:
Angeline Chin 
angelinechin@ta.com.my