New model launches set to drive UMW forward


The group is looking at a stream of new model (Vios and Yaris facelifted) launching in December and supported by Toyota RAV4 CBU, Lexus UX200 and Toyota Hilux Rogue, with two new CKD models – the Innova and Fortuner – expected in January 2021.

PETALING JAYA: Expected launches of new car models toward year-end could provide further upside to UMW Holdings Bhd’s already stellar third-quarter (Q3) performance.

The group is looking at a stream of new model (Vios and Yaris facelifted) launching in December and supported by Toyota RAV4 CBU, Lexus UX200 and Toyota Hilux Rogue, with two new CKD models – the Innova and Fortuner – expected in January 2021.

Kenanga Research noted that the company’s core profit after tax and minority interests (PATAMI) of RM95.6mil for the nine-month period of financial year 2020 (FY20) came in at 111% and 70% of its and consensus full-year estimates, respectively.

“The positive variance from our estimate is due to stronger-than-expected contribution from the automotive division and associate Perusahaan Otomobil Kedua Sdn Bhd (Perodua).

“Note that the nine-month core PATAMI excludes Toyota Capital Malaysia’s provision of loan moratorium impact of RM33.8mil, reversal of impairment and receivables (including debt recovery) of RM31.7mil, unlisted oil and gas forex loss of RM27.9mil and other impairment reversal of RM1.6mil, ” it said.

Consequently, Kenanga has increased its forecast FY20 and FY21 core net profit estimates by 87% and 24%, respectively, to reflect the stronger contribution from the automotive division and Perodua.

Year-on-year, UMW’s nine-month core PATAMI plunged 56% mainly due to the lower automotive segment’s pre-tax profit contribution (-65%), which suffered from the closure of businesses during the movement control order (MCO) from March till May and from higher Bukit Raja plant depreciation (+9%).

Additionally, the Toyota and Lexus as well as Perodua brands recorded lower unit sales at 37,339 (-23%) and 145,012 (-19%), respectively.

The equipment segment also faced a challenging market for both the heavy and industrial equipment, especially during the MCO.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 18
Cxense type: free
User access status: 3

UMW , Toyota , Perodua , sales tax , car purchases , Vios , Yaris , Rava ,

   

Did you find this article insightful?

Yes
No

Next In Business News

Daily oil palm activities in Sabah to continue amid SOPs - associations
SK Nexilis to build RM2.3bil copper foil facility in Kota Kinabalu�
Gabungan AQRS wins RM83.57mil job
BSL Corp slides over unsuccessful corporate exercise
RGT to speed up expansion as Q2 profit soars on strong export
Duopharma to supply 6.4 million doses of Sputnix V vaccine�
Pharmaniaga signs deal to supply 12 million doses of vaccine to MOH
Indonesia says new sovereign wealth fund attracts USD10b commitment
Disappointing close for Bursa, Public Bank retains part of gains
Jet engine maker Rolls-Royce cuts 2021 forecasts on travel slump

Stories You'll Enjoy


-->