The research house said DRB-Hicom's FY20 core loss of RM193mil came within its full-year core loss estimate of RM164mil and consensus core loss of RM145mil.
The negative earnings performance was mainly due to lower overall sales impacted by the COVID-19 pandemic and further worsened by the unfavourable forex movement, which caused the group to recognise, forex losses on translation of payables and borrowings denominated in foreign currencies.
However, Kenanga expects the group's marques to boost their sales performance during the sales tax exemption period by featuring new or revised models.
Meanwhile, Pos Malaysia's ongoing transformation efforts will augment the improved tariff rates and growing demand for e-commerce.
Other businesses in the group will continue to adapt to the so-called "new normal" environment to ensure financial sustainability against the backdrop of changes in consumer behaviour.
Kenanga kept its target price of RM2.50 on the stock with a price-earnings ratio of 15x based on FY21 forecast earnings per share.