Umw Holdings Berhad

Sime Darby Bhd’s industrial business continues to drive the group’s performance, while UMW Holdings Bhd’s contribution helped to boost the bottomline.

KUALA LUMPUR: The RM5.8 billion UMW Holdings Bhd acquisition is expected to strengthen Sime Darby Bhd’s presence in Malaysia and broaden its products portfolio. 

© New Straits Times Press (M) Bhd

The ownership of Perodua 🚘

Perodua stands as a prominent player in the Malaysian automotive industry, commanding a sizable 41.3% share of the market. This dominance can be largely attributed to the popularity of models such as the Bezza and Myvi, with the latter historically reigning as Malaysia's top-selling car for five consecutive years until recently, Bezza has overtaking it.

However, it may come as a surprise that Perodua's ownership is not centralized under a single entity. Instead, ownership of Perodua is distributed among several parties:

📍$UMW / 4588 (UMW HOLDINGS BERHAD): Holds a 38% stake. Following its acquisition by $SIME / 4197 (SIME DARBY BERHAD), these shares are now under the control of SIME. Notably, PNB emerges as the largest shareholder of SIME, boasting a 50.3% ownership stake. Consequently, it's estimated that PNB indirectly possesses 19.11% of Perodua shares through its majority stake in UMW, complemented by its direct 10% ownership, resulting in a total shareholding of 29.11% in Perodua?
📍Daihatsu: Holds a 25% stake and operates as a subsidiary of Toyota.
📍$MBMR / 5983 (MBM RESOURCES BHD): Holds a 20% stake. Notably, Med-Bumikar Mara emerges as the largest shareholder of MBMR, commanding a 50.07% ownership stake. However, Med-Bumikar Mara's ownership is distributed among seven entities. The largest among these is MARA, holding a 29.18% stake in Med-Bumikar Mara, followed by various other families including Tan Sri Ahmad Azizuddin Family (13.47%), Yap Family (11.75%), Datuk Abdul Rahim Family (11.74%), Looi Family (11.72%), Wong Family (11.17%), and Ng Family (10.21%).
📍PNB: Holds a 10% stake.
📍Mitsui & Co: Holds a 7% stake. Mitsui & Co stands as one of the top five Japanese firms and has significant investments in Malaysia, including involvement in the plastic business acquired from $SCGM / 7247 (SCGM BHD), as well as interests in FPSO and Lalaport through its subsidiary companies.

Hence, given Perodua's non-listed status, accessing the company's financial performance directly proves challenging. However, for insights into Perodua's operations, we may turn to MBMR instead of SIME. This preference stems from the fact that SIME, being a significantly larger and more diversified entity, might not offer as clear a picture of Perodua's specific financial dynamics.

Here’s some quick updates on automotive segment:

YTD Feb 2024 Automotive Outlook:
YTD Sales volume for Feb 2024 was 13% higher than Feb 2023.
Sales in March 2024 is expected to be higher than February 2024 as companies having their FYE in 31st March would rush for deliveries & Hari Raya festive season promotional campaigns.

Recapping 2023 Automotive Outlook:
The total registration of new Passenger Vehicles in 2023 rose to 719,160 units from 642,157 units in 2022, representing an increase of 77,003 units (~12%).

The high volume increase was largely due to the strong sales performances by the two national makes [$MBMR / 5983 (MBM RESOURCES BHD) $KLSE-DRBHCOM]. As a result, the combined market share of both national makes (within Passenger Vehicle segment) rose to 66.9% (481,300 units) in 2023 compared with 65.1% (418,045 units) in 2022.
Meanwhile, the non-national makes [$UMW / 4588 (UMW HOLDINGS BERHAD) $ BAUTO] registered a higher sales volume of 237,860 units or 6% growth compared to 2022 with 224,112 units.

Electrified vehicles or xEV accounted for approximately 5% of total industry volume (TIV) showing a continued positive momentum for its demand. The xEV sales increase by 69% from 22,619 units in 2022 to 38,214 units, with 10159 units of BEV and 28055 units of Hybrid vehicles.

Source: Malaysian Automotive Association (MAA)


News on EV:
1. $MBMR / 5983 (MBM RESOURCES BHD) - Perodua ‘D01D’ EV production scheduled to start in late 2025, working with partner on prototype : https://cutt.ly/8w34SUsz

2. $BAUTO / 5248 (BERMAZ AUTO BERHAD) adds China EV maker XPeng's distributorship to its portfolio - https://cutt.ly/lw34SU3u

3. EV Models From DRB-Hicom This Year, Proton X90 and Smart EV - https://cutt.ly/Hw34SI8U


Personal thoughts:
- Would need to look into each individual companies’ booking backlog, any pipeline of new launches, impending fuel subsidy rationalisation and also further observe if there is any catalyst or headwinds.

PETALING JAYA: CGS International Research (CGSI Research) has raised its rating for Sime Darby Bhd from a “hold” to “add” as it sees the group’s acquisition of UMW Holdings Bhd being earnings-accretive and a good de-risking strategy.

Sime Darby Bhd has completed its acquisition of UMW Holdings Bhd yesterday, with the latter effectively becoming its wholly-owned subsidiary.

KUALA LUMPUR: Sime Darby Bhd has  completed its acquisition of UMW Holdings Bhd, achieving a 100 per cent stake in the company.

© New Straits Times Press (M) Bhd

KUALA LUMPUR: Sime Darby Bhd has completed its acquisition of UMW Holdings Bhd, achieving full ownership and making UMW a wholly-owned subsidiary.

$UMW / 4588 (UMW HOLDINGS BERHAD)
Research by Maybank
N/A

"Ceasing Coverage"

UMW was successfully delisted on 19 Feb 2024 after Sime Darby has secured 98.88% of UMW shares at the close of its Mandatory General Offer (MGO). Consequently, we are ceasing research coverage of UMW. Investors should no longer depend on our financial forecasts in making investment decisions nor infer an adverse opinion as a result of our decision to cease coverage. Our last call on UMW was a BUY, with a TP of MYR6.22 based on 14x FY24E PER, 5Y 12M fwd mean.

Analyst(s):
Loh Yan Jin
lohyanjin.loh@maybank-ib.com

KUALA LUMPUR: Moving forward into the second half of its financial year (2HFY24), Sime Darby Bhd is expected to continue to leverage its industrial segment as well as the consolidation of UMW Holdings Bhd.

KUALA LUMPUR: After wrapping an eventful quarter, Sime Darby Bhd group CEO Datuk Jeffri Salim Davidson said the group will now focus on the growth of its two core businesses and work towards the seamless integration of UMW Holdings Bhd.

KUALA LUMPUR: UMW Holdings Bhd will be delisted from Bursa Malaysia on Feb 19, 2024 to mark the completion of its privatisation by Sime Darby Bhd.

© New Straits Times Press (M) Bhd

Delisting of Securities

UMW - DELISTING OF THE ENTIRE ISSUED SHARE CAPITAL OF UMW FROM THE OFFICIAL LIST OF BURSA MALAYSIA SECURITIES BERHAD

PETALING JAYA: Sime Darby Bhd’s takeover of UMW Holdings Bhd has positioned the group with a full spectrum of auto offering in the local automotive market.

$UMW / 4588 (UMW HOLDINGS BERHAD)
Research by TA
Cease Coverage - TP of RM5.00

"Cease Coverage"

Sime Darby Berhad (SIME) had already secured 98.86% or 1.15bn shares of UMW Holdings Bhd (UMW) as at 31 Jan 2024. In view of this, Bursa Securities will suspend the trading of the shares since SIME does not intend to maintain the listing status of UMW.

The trading suspension will start today upon the expiry of 5 market days from the Extended Closing Date (31 Jan 2024). Subsequently, UMW will be delisted and withdrawn from the Official List of Bursa Malaysia Securities Berhad. With this, we cease coverage on UMW with immediate effect and our last TP is benchmarked to the offer price of RM5.00/share by SIME.

Analyst:
Angeline Chin
angelinechin@ta.com.my

KUALA LUMPUR: Analysts are revising their projections for Sime Darby Bhd following its takeover of UMW Holdings Bhd, which has been suspended from trading on Bursa Malaysia effective today.

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - SIME DARBY BERHAD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - SIME DARBY ENTERPRISE SDN BHD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - SIME DARBY HOLDINGS BERHAD

NOTICE OF COMPULSORY ACQUISITION TO ALL DISSENTING SHAREHOLDERS OF UMW HOLDINGS BERHAD ("UMW" OR "OFFEREE") PURSUANT TO SECTION 222(1) OF THE CAPITAL MARKETS AND SERVICES ACT 2007 IN RESPECT OF THE UNCONDITIONAL MANDATORY TAKE-OVER OFFER BY SIME DARBY ENTERPRISE SDN BHD ("SDESB" OR "OFFEROR") TO ACQUIRE ALL THE REMAINING ORDINARY SHARES IN UMW NOT ALREADY HELD BY THE OFFEROR AND SIME DARBY BERHAD ("OFFER SHARES") FOR A CASH CONSIDERATION OF RM5.00 PER OFFER SHARE ("MGO")

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - SIME DARBY ENTERPRISE SDN BHD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - SIME DARBY HOLDINGS BERHAD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - SIME DARBY BERHAD

WINDING UP / RECEIVER & MANAGER / RESTRAINING ORDER / SPECIAL ADMINISTRATORU-TRAVELWIDE SDN BHD - MEMBERS' VOLUNTARY WINDING UP

TAKE-OVERS & MERGERS (PARAGRAPH/RULE 9.19 (47A))

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - SIME DARBY ENTERPRISE SDN BHD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - SIME DARBY HOLDINGS BERHAD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - SIME DARBY BERHAD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - SIME DARBY ENTERPRISE SDN BHD