Is DRB-Hicom undervalued?

Chinese connection: Employees working along a Geely Automobile Corp assembly line in Cixi, Zhejiang province in China. Under the partnership with Geely, Proton will be developing its first SUV model from Geely’s bestselling model – the Boyue. — Reuters

FOR years DRB-Hicom Bhd shares traded at a big discount to its asset value as investors shied away from the group’s financially struggling unit Proton Holdings Bhd.

But that gap is finally narrowing as investors bet on brighter prospects for Proton now that it has China-based strategic partner Zhejiang Geely Holding Group Co Ltd (Geely) on board.