New launches to support automotive sector


  • Auto
  • Tuesday, 21 Nov 2017

The research house said in a report that it maintained its underweight stance on the sector with sell calls on both UMW Holdings Bhd and APM Automotive Holdings Bhd.

KUALA LUMPUR: Affin Hwang Capital Research expects momentum in the automotive sector to remain strong for the remaining two months of the year, supported by new model launches and year-end campaigns.

The research house said in a report that it maintained its underweight stance on the sector with sell calls on both UMW Holdings Bhd and APM Automotive Holdings Bhd.

For sector exposure, it preferred Pecca Group Bhd and MBM Resources Bhd.

Total industry volume (TIV) for October 2017 rose 14.7% on-month to 47,000 units driven by a longer working month as well as the ongoing year-end promotional campaigns.

Cumulative auto sales for the first 10 months of the year recorded a 1.4% on-year increase to 472,700 units.

However, the research house noted that total passenger car sales declined by 1.5% on-year.

It maintained its 2017 TIV sales assumption unchanged at 592,000 units, a 2% increase on-year.

The research house said upside risks to its underweight call and auto stocks were minimal compression in profit margins and unexpectedly strong TIV sales.

Downside risks, it said, could come from a prolonged tightening of auto financing hindering the borrowing ability of car buyers; exchange rate risk and a slowdown in the economy.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Business , Auto , automotive , UMW , APM , ratings ,

   

Next In Business News

CPO futures seen trading with upward bias next week
As scrutiny mounts, crypto exchange Binance to wind down derivatives in Europe
Oil price climbs, notches fourth monthly gain on growing demand
Chevron tops profit estimates, joins share buyback stampede
Indian billionaire's new airline may give Boeing a chance to regain lost ground
Global Markets: US stocks slip, US# has worst week in almost two months
Post-pandemic comeback of Malaysian REITs
Selective opportunities in equities
Rocky road to recovery
How strong is the transitory narrative?

Stories You'll Enjoy


Vouchers