PETALING JAYA: Financial year 2026 (FY26) will be a pivotal year for MCE Holdings Bhd
, underpinned by multiple growth drivers, according to Hong Leong Investment Bank (HLIB) Research.
“MCE remains one of the most under-the-radar proxies to Perodua’s electric vehicle (EV) story. With Malaysia still in the early stages of EV adoption, the group is well-positioned to benefit as EV penetration accelerates exponentially,” it said.
It said the most immediate catalyst is the supply of infotainment and advanced driver-assistance systems (Adas) to Perusahaan Otomobil Kedua Sdn Bhd’s (Perodua) upcoming EV model, scheduled for launch by year-end.
The research house estimated revenue contribution per vehicle at RM3,000 – nearly 10 times higher than MCE’s typical supply value – providing significant earnings leverage.
It expected strong demand for the EV on the back of a competitive price point of below RM100,000, which is aimed at the mass market.
Beyond EV, MCE is expanding into high-margin electronics, exports, and strategic joint ventures (JVs) in next-generation technologies, strengthening its appeal as a resilient and scalable proxy to Malaysia’s automotive transformation.
HLIB Research anticipated new revenue streams to commence from the first quarter of FY26, including supply to US-based Dorman for the automotive aftermarket segment and diversification into non-automotive manufacturing via its JV with Sounding Industries.
“Together, these new income streams broaden and strengthen MCE’s earnings base.
In parallel, MCE continued to proactively position itself at the forefront of next-generation automotive technologies.
“This is reflected in its JV to manufacture mmWave radar for Adas applications and its memorandum of understanding with Adayo to produce smart cockpit and smart driving products,” the research house added.
HLIB Research pointed out that MCE is collaborating closely with the Malaysian Investment Development Authority (Mida) to integrate locally designed semiconductor integrated circuits into its products – a move aligned with national industrial policy.
It said the partnership could open further opportunities as Mida intensifies efforts to attract high-value automotive investments, reinforcing MCE’s long-term growth trajectory.
The research house has maintained its “buy” call for the counter with a target price of RM2.40.
It added that MCE’s balance sheet remained robust with a net cash position of RM73.3mil.
