HLIB Research said Tan Chong’s vehicle sales volume in the Malaysian market fell 17.9% in 9M25.
PETALING JAYA: Tan Chong Motor Holdings Bhd
’s outlook remains subdued despite signs of operational improvement across some markets, with analysts warning that the group is likely to stay in the red amid persistent competitive pressures.
Following engagements with Tan Chong’s management, MBSB Research, which maintained its “sell” call on the stock, said its “overall takeaways point to an improving yet still challenging operating landscape”.
“We continue to expect the group to remain in the red over our forecast period of up till financial year ending Dec 31, 2027 (FY27),” it said. “Our target price is unchanged at 34 sen a share, pegged to an FY26 price-to-book value of 0.1 times.”
In Malaysia, where Tan Chong is the sole and exclusive distributor of Nissan vehicles, MBSB Research noted that Nissan sales are down 19.9% year-to-date, although sequential performance improved in the third quarter (3Q25) following the August launch of the Navara X-Tremer.
On a brighter note, the research outfit expects Tan Chong’s potential partnership with Perodua for its battery electric vehicle (BEV) programme to lift utilisation at its “underused” Serendah plant, which currently produces Nissan models making up less than 1% of total industry volume.
“Beyond supplying coating and painting services, the group’s assembly arm is expected to undertake selected sub-assembly work,” it said.
MBSB Research said production of Perodua’s BEV is expected to start at 500 units per month, eventually rising to 2,000–2,500 units with minimal new investment required. “Minimal investment is anticipated for this partnership, as the work will primarily involve internal reconfiguration within the existing production setup.”
Hong Leong Investment Bank (HLIB) Research also maintained its “sell” call with an unchanged target price of 58 sen after Tan Chong posted another quarterly loss.
It said the group recorded a core loss after tax and minority interests of RM54.6mil in 3Q25, pushing its nine-month (9M25) losses to RM122.3mil.
HLIB Research said Tan Chong’s vehicle sales volume in the Malaysian market fell 17.9% in 9M25, dragged by intense competition, limited new Nissan offerings, and deteriorating margins from lower operational scale.
“The Malaysia market continues to be competitive due to aggressive new launches and sales campaigns by various competing original equipment manufacturers or OEMs,” it said.
Still, HLIB Research said the upcoming Wuling Bingo launch and secured painting services for Perodua’s BEV starting December 2025 should help improve the local operations.
“Tan Chong is also divesting non-core assets to improve cashflow and balance sheet,” it added.
In Vietnam, HLIB Research said vehicle sales volume surged 171.4% in 9M25, driven by new dealerships carrying GAC models. “However, the Vietnam operations remain dragged by the Danang plant, resulting in losses for the period,” it said.
“The localisation of GAC models is still under feasibility study/discussion given the still low volume.”
Across Indochina (ex-Vietnam), HLIB Research said Myanmar continued to be profitable, while Laos and Cambodia remained loss-making due to heightened competition from new Chinese marques.
“We remain cautious on the group’s subdued sales volumes and ongoing competitive pressures (particularly from Chinese original equipment manufacturers),” it concluded.
