DRBHCOM
Drb-hicom Berhad
Company Background
Malaysia's New Vehicle Sales Hit Record 816,747 Units in 2024
Malaysia's new vehicle sales, or total industry volume (TIV), have surpassed the 800,000-unit mark for the first time, soaring to all-time high of 816,747 units in 2024.
December turned out to be the industry's highest monthly TIV ever, with 81,735 units sold as the 2024 total sales represents a two per cent increase compared to 799,821 units in 2023.
Malaysian Automotive Association (MAA) president Mohd Shamsor Mohd Zain attributed the performance to Malaysia's resilient economy.
"The country's gross domestic product (GDP) growth of 5.2 per cent in the first three quarters of 2024, compared to 3.8 per cent during the same period in 2023, along with the overnight policy rate remaining at 3.0 per cent since May 2023, created a conducive environment for vehicle loans.
"Additionally, a stable socio-political environment and a low unemployment rate of 3.1 per cent, the lowest in a decade, further boosted consumer confidence and purchasing power," he said at a press conference in conjunction with a memorandum of understanding signing ceremony between MAA and the Malaysia Automotive Robotics and IoT Institute here today.
High backlog orders, particularly in the A segment, contributed to an increase in mational makes' market share, which accounted for 62 per cent of total TIV in 2024, Shamsor added.
The surge in battery electric vehicle (BEV) sales, which rose by 45 per cent in 2024 due to tax incentives and the introduction of new models particularly from China, also played a crucial role.
"Aggressive sales and promotional campaigns by original equipment manufacturers (OEMs) and distributors, as well as the launch of models featuring advanced technologies, resonated positively with the market," he said.
Shamsor said the automotive market and Malaysia's economy are expected to remain resilient this year.
"GDP growth is forecast to range between 4.5 per cent and 5.5 per cent, while Bank Negara Malaysia is likely to maintain the OPR at 3.0 per cent, supporting sustained demand for vehicles. An increase in the minimum wage to RM1,700 next month and a salary revision of up to 15 per cent for government servants are expected to further boost vehicle purchases," he added.
He said a stable labour market with low unemployment at 3.2 per cent will ensure income security, while the anticipated expiration of BEV tax exemptions at the end of 2025 could spur urgency in BEV purchases.
"The introduction of new brands and models, along with continued promotional strategies, is likely to sustain market excitement," he said.
Shamsor, however, is cautious about potential downside risks.
"The US-China trade war could have mixed effects on Malaysia, particularly through reduced external trade and the relocation of Chinese plants. The mid-2025 petrol subsidy rationalisation exercise may impact demand for higher-engine capacity vehicles but could encourage EV sales. Furthermore, limited EV charging infrastructure in less developed states may hinder widespread EV adoption, affecting overall TIV growth," he said.
$BAUTO / 5248 (BERMAZ AUTO BERHAD) $DRBHCOM / 1619 (DRB-HICOM BERHAD)
Source: NSTP Business Time
$DRBHCOM / 1619 (DRB-HICOM BERHAD)
Research by KENANGA
$DRBHCOM / 1619 (DRB-HICOM BERHAD)
Research by PBIV
$DRBHCOM / 1619 (DRB-HICOM BERHAD)
Research by HLIB
$DRBHCOM / 1619 (DRB-HICOM BERHAD)
$DRBHCOM / 1619 (DRB-HICOM BERHAD)
Research by Public
Neutral– TP RM1.38
"Slipped Into The Red”
DRB-Hicom (DRB) reported a net loss of RM17.0m in 2QFY24, compared to a net profit of RM33.7m in 1QFY23, primarily due to weaker performance in Proton Holdings and widened losses in Pos Malaysia. The results were below both our and consensus estimates, at 23.2% and 23.3% of full-year forecasts respectively. We have trimmed our FY24-FY26F earnings forecasts by 20-30%, factoring in lower vehicle sales and weaker performance across all its business divisions. Consequently, our sum-of-parts (SOP) based TP is revised to RM1.38 (previously RM1.70). We maintain a Neutral call on DRB.
Analyst:
Denny Oh
research@publicinvestbank.com.my
$DRBHCOM / 1619 (DRB-HICOM BERHAD)
Research by HLIB
BUY – TP RM1.55
"A weak 2QFY24”
DRB reported core PATMI RM8.3m for 2QFY24, which brought 1HFY24 to RM92.5m, below both our expectation (29.1%) and consensus (28.9%), affected by poor showings from automotive (shorter working quarter and scheduled plant shutdowns), bank (higher provision) and PosM (reduced volume). Nevertheless, we expect an improved 2H24 on stronger automotive contributions and normalised bank performance. We maintain BUY on DRB with a lower TP of RM1.55 (from RM1.65), based on 20% discount to SOP of
RM1.93.
Analyst:
Daniel Wong
kkwong@hlib.hongleong.com.my
$DRBHCOM / 1619 (DRB-HICOM BERHAD)
$DRBHCOM / 1619 (DRB-HICOM BERHAD)
$DRBHCOM / 1619 (DRB-HICOM BERHAD)
$DRBHCOM / 1619 (DRB-HICOM BERHAD)
Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD
PETALING JAYA: DRB-Hicom Bhd has guided for flattish vehicle sales in the financial year 2024 (FY24) as it expects subdued sales for less popular brands.
KUALA LUMPUR: DRB-HICOM Bhd is expected to sell nearly 160,000 units of Proton vehicles, marking a 3.4 per cent year-over-year increase, and around 80,000 units of Honda vehicles in 2024.
© New Straits Times Press (M) Bhd
KUALA LUMPUR: Hong Leong Investment Bank Bhd (HLIB Research) remains positive on DRB-HICOM Bhd's long-term outlook on potential growth driven by Proton Holdings Bhd’s subsidiaries.
© New Straits Times Press (M) Bhd
$DRBHCOM / 1619 (DRB-HICOM BERHAD)
Research by Kenanga
Market Perform – TP of MYR 1.40
“Transitioning to EV”
DRBHCOM guided for flattish vehicle sales in FY24. It is riding on parent Zhejiang Geely group’s technology and eco-system for the transition to EV. It will put onto the market the all-new Proton e.MAS EV (CBU) using the Global Modular Architecture (GMA) platform by end-2024. We maintain our forecasts, TP of RM1.40 and MARKET PERFORM call.
Analyst(s):
Wan Mustaqim Bin Wan Ab Aziz
wanmustaqim@kenanga.com.my
$DRBHCOM / 1619 (DRB-HICOM BERHAD)
Research by HLIB
Buy – TP of MYR 1.65
“Supported by Proton, Muamalat & CTRM”
Post management briefing, we remain positive on DRB’s long term outlook. Proton is targeting to achieve 2024 sales of 160k units (vs. 151k units in 2023) with new models introduced and attractive promotional campaigns. Both Bank Muamalat and CTRM will continue to support 2024’s performance. We reiterate our BUY rating with unchanged TP of RM1.65 based on 20% discount to SOP: RM2.04
Analyst(s):
Daniel Wong
kkwong@hlib.hongleong.com.my
Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD
$DRBHCOM / 1619 (DRB-HICOM BERHAD)
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Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD
Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD
Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD
General Meetings: Outcome of Meeting
Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD
WINDING UP / RECEIVER & MANAGER / RESTRAINING ORDER / SPECIAL ADMINISTRATORDRB-HICOM BERHAD ("DRB-HICOM" or "the Company")
- Dissolution of Subsidiary Company
Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD
$DRBHCOM / 1619 (DRB-HICOM BERHAD)
Research by Kenanga
Market Perform – TP RM1.40
“Higher Tax Weighs"
DRBHCOM’s 1QFY24 results met expectations. Its 1QFY24 core
net profit plunged 22% YoY as improved operating results were negated by a higher tax. We are cautious on its outlook as rival Perodua is turning up the heat with aggressive new launches. We maintain our forecasts, TP of RM1.40 and MARKET PERFORM call.
Analyst:
Wan Mustaqim Bin Wan Ab Aziz
wanmustaqim@kenanga.com.my
Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD
$DRBHCOM / 1619 (DRB-HICOM BERHAD)
Research by Public
Neutral – TP RM1.70
“Within Expectation"
DRB-Hicom (DRB) reported sequentially stronger 1QFY24 core net profit of RM91.5m (+55.7% QoQ) attributed to improved performance across the Group’s businesses, though weaker YoY (-15.2%) due to higher taxation charges. Results were within both our and consensus estimates, at 28.5% and 27.1% of full-year forecasts respectively. We keep or forecasts unchanged and retained our Neutral call on DRB with an unchanged sum-of-parts (SOP) based TP of RM1.70.
Analyst:
Denny Oh
research@publicinvestbank.com.my
$DRBHCOM / 1619 (DRB-HICOM BERHAD)
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