PETALING JAYA: Earnings of the automotive sector are expected to remain soft, with a 1.8% growth in 2025 and a sharp 62% drop in 2026, reflecting margin pressure and weak volumes amid keen competition, say analyts.
The sector’s valuation, which is trading at 11.8 times, is deemed “fair” given the muted earnings outlook and limited catalysts, with upside potential likely capped in the near term, said UOB Kay Hian (UOBKH) Research.
