CIMB Research:
KUALA LUMPUR: CIMB Equities Research is retaining an Add and sum-of-parts based target price of RM2.90 for DRB-Hicom which is its top pick in the auto sector.
It said on Friday DRB-Hicom is optimistic of a successful turnaround at Proton, underpinned by the 10-year business plan set out by the carmaker’s new management team led by CEO Dr Li Chunrong from Geely.
“DRB-Hicom said the rationale behind its proposal to dispose of its non-core property assets was concern over the lack of future funding to redevelop these assets.
“The group also expects its services division to benefit from growing e-commerce activities through Pos Malaysia and potential stake rationalisation in Bank Muamalat,” it said.
CIMB Research and 80 analysts and fund managers attended DRB-Hicom’s investors’ briefing which was hosted by group managing director Datuk Seri Syed Faisal Syed Albar.
At the briefing, DRB-Hicom shared four strategic focus areas to drive future growth.
1) Turnaround of Proton by limiting operational losses via quality improvements, cost optimisation and new model launches.
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