PETALING JAYA: MBM Resources Bhd
(MBMR) is expected to deliver a stronger fourth quarter ending Dec 31, 2025 (4Q25), supported by firmer industry production levels and sustained demand across its key marques, according to analysts.
Kenanga Research said it is “upbeat” on the group’s outlook, noting that the group is positioning for a stronger 4Q25 on the back of higher total industry production (TIP).
“MBMR guided for stronger 4Q25 on increased sales momentum for its dealership especially for the Jaecoo brand and auto parts manufacturing driven by both Perodua and Proton on increased total industry production level with both electric vehicle (EV) plants’ commercial production slated for 4Q25,” it said.
Kenanga Research pointed out that Jaecoo’s year-to-date till Sept 30 sales stood at at 327 units and a 2.3% total industry volume (TIV) share, “consistently above 100 units/quarter versus below 100 units/quarter last year”.
The research house also highlighted an uptick in Daihatsu with 627 units, up 4% year-on-year, and Volkswagen with 386 units, up 11% year-on-year sales following inventory replenishment.
Looking ahead, Kenanga Research expects “consistent sales momentum”, backed by new model launches.
It also expects strong growth in its share of associate results especially from 23%-owned Perusahaan Otomobil Kedua Sdn Bhd (Perodua) with order backlog of Perodua vehicles remaining strong at over 89,000 units (from 68,000 units end-2024) due to a combination of steady new order registration and consistent production capacity.
Kenanga Research added that MBMR will supply key components for Perodua’s EV – including safety products, acoustics noise, vibration, and harshness, tyre assembly and wheel arch liners.
The research outfit maintained its forecasts and target price of RM7.00, applying a price-to-earnings of eight times on financial year ending Dec 31, 2026 (FY26) earnings, which is at a discount to the auto sector’s average of 11 times, “given its smaller scale, and a business model which is skewed toward auto dealerships compared to other players which are more into auto manufacturing.”
It also reinstated a higher FY25 dividend estimate of 48 sen from 39 sen earlier, noting the payout could be “comparable or higher” than FY24’s 54 sen.
Hong Leong Investment Bank (HLIB) Research has maintained its earnings forecast, keeping a “buy” call on the stock with an unchanged target price of RM7.10 a share.
“We believe MBMR’s PE (price-to-earnings) valuations are undemanding at six times to seven times for FY25 to FY27 with attractive dividend yield,” it said.
“MBMR is in a strong net cash position of 77.7 sen per share with sustainable earnings and cash flow, leveraging onto Perodua’s strong sales.”
MBMR is the second-largest shareholder of Perodua, with an effective 22.6% stake in the national carmaker.
HLIB Research said the group is “highly leveraged to Perodua” not only through its associate earnings, but also through its parts and components supply chain and its dealership network.
