Maybank IB Research expects dividend yield of more than 9%, based on a 60% payout assumption.
PETALING JAYA: MBM Resources Bhd
’s dividend prospects remain strong, supported by cash reserves and higher associate payouts this year, according to Maybank Investment Bank (IB) Research.
The research house expected dividend yield of more than 9%, based on a 60% payout assumption.
However, it said earnings upside beyond financial year 2025 (FY25) would likely be capped by Perusahaan Otomobil Kedua Sdn Bhd’s (Perodua) production constraints.
Perodua’s electric vehicles (EVs) are unlikely to be assembled at its two existing plants in Rawang, according to Maybank IB Research.
It viewed MBM as a defensive pick, offering stable dividends and exposure to Perodua, the resilient mass-market leader.
It maintained its earnings forecasts, with a target price at RM5.63 a share and a “hold” for the stock.
During a recent analyst briefing, the research house gathered that Perodua is on track to meet or could exceed its FY25 sales target of 345,000 units (down 4% year-on-year with first-half 2025 sales of 166,188 or down 2% y-o-y) and a backlog of about 90,000 units underpinning sales in the second half.
New models, including its first EV and the D66B, remained on schedule for a fourth-quarter 2025 (4Q25) launch, which should support sales going into FY26.
However, MBM’s dealership is not expected to be involved in Perodua’s upcoming EV launch, as the initial “trial-and-error” phase is expected to be managed directly by the original engine manufacturer (OEM).
But MBM will supply auto parts for the new model targeting an output of 500 units a month, particularly safety products, acoustics and tyre assembly.
In 1H25, auto parts revenue rose 6% y-o-y despite lower volume, mainly due to a shift to turnkey arrangements with a key customer, where MBM purchased components on behalf of customers and bills them back, lifting revenue but not margins.
Meanwhile, Hino and Volvo sales remained soft, while Volkswagen (15% y-oy to 251 units) and Daihatsu (17% y-oy to 411 units) improved in 1H25, supported by OEM incentives and new stock arrivals, it said.
Jaecoo sales more than doubled from a low base since dealership started in 3Q24. Upcoming launches include the Jaecoo J5 and C9 PHEV in 2H25, Hino Euro 5 LCV (4Q25), and Volvo ES90 (2026), which the research house said could feed into FY26 earnings.
