PETALING JAYA: DRB-Hicom Bhd stands to benefit from subsidiary Proton Holdings Bhd’s forecast earnings growth in financial year 2020 (FY20) and potential Shah Alam land monetisation following its relocation, CGS-CIMB Equities Research says.
In its research note yesterday, it said it expects a 15% rise in 53.5%-owned Pos Malaysia Bhd’s revenue in forecast FY20 after the recent postage rates revision, which should help boost its services division’s profitability. “We reiterate an ‘add’ call with a higher RM3.10 sum-of-parts (SOP) based target price to reflect Proton and Pos Malaysia’s earnings recovery and exclude the contribution from Alam Flora,” said the research unit.