MIDF Research maintained its financial forecasts for now, awaiting further details on the TQ Wuling rollout.
PETALING JAYA: Tan Chong Motor Holdings Bhd
’s move to launch the Chinese automotive brand Wuling in Malaysia is a positive effort to broaden its product portfolio, says MIDF Research.
However, the research house did not expect meaningful volume contributions in the near term.
While its target price for Tan Chong remained unchanged at 34 sen a share. It downgraded its call to “sell” from “neutral” for the stock as it is an opportune time to take profit following the recent share price rally.
The shares closed one sen up to 58 sen in yesterday’s trading.
MIDF Research said the operating environment remains tough and expects Tan Chong to stay in the red throughout its forecast period.
It maintained its financial forecasts for now, awaiting further details on the TQ Wuling rollout.
The partnership with China’s SAIC-GM-Wuling Automobile Co Ltd complements Tan Chong’s existing electrified lineup, which includes the fully electric Nissan Leaf and the Nissan Kicks ePower, a hybrid system that delivers electric motor drive but is fuelled by a petrol engine.
The semi-knockdown (SKD) approval allowed Tan Chong to locally assemble Wuling models, starting with the compact TQ Wuling Bingo, which is slated for launch in the fourth quarter of 2025.
More models are planned, with regional export potential in view.
The assembly operations will be at the group’s Segambut plant, which currently assembles the GAC GS3 Emzoom.
The plant is estimated to be running at 50% or below capacity, making this a timely opportunity to improve utilisation.
SKD assembly requires light modifications to existing lines, keeping capital expenditure minimal.
