[%ovPI%]
Research by HLIB
Buy - TP RM6.80

"Strong performance to hold up"

MBMR reported strong core PATMI of RM148.1m for 1HFY24 (+12.1% YoY), in tandem with strong Perodua sales and production volume. We expect the performance to sustain into 2H24, supported by the still strong demand for Perodua, driven by its order backlogs of +100k units, while new order intakes remains healthy. Perodua has indicated sales target to sustain at 330k units in 2024. Maintain BUY on MBMR with a higher TP of RM6.80 (from RM6.50) based on 10% discount to SOP (RM7.61). Raised earnings forecast for FY24/FY25/FY26 by 13.1%/1.6%/1.6% and dividend payout for FY24 to 28 sen/share (from 24 sen/share).

Analyst:
Daniel Wong
[%dKkK%]

$KLSE-MBMR
Research by HLIB
Buy - TP RM6.80

"Strong performance to hold up"

MBMR reported strong core PATMI of RM148.1m for 1HFY24 (+12.1% YoY), in tandem with strong Perodua sales and production volume. We expect the performance to sustain into 2H24, supported by the still strong demand for Perodua, driven by its order backlogs of +100k units, while new order intakes remains healthy. Perodua has indicated sales target to sustain at 330k units in 2024. Maintain BUY on MBMR with a higher TP of RM6.80 (from RM6.50) based on 10% discount to SOP (RM7.61). Raised earnings forecast for FY24/FY25/FY26 by 13.1%/1.6%/1.6% and dividend payout for FY24 to 28 sen/share (from 24 sen/share).

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