PETALING JAYA: Stronger associate contributions and a firmer ringgit are expected to underpin MBM Resources Bhd
’s earnings prospects into financial year 2026 (FY26), as research houses turn more constructive on the group despite moderating industry volumes.
The company closed FY25 with improved net profit of RM339.06mil compared with RM333.39mil previously, mainly due to higher associate contributions and a RM5.95mil one-off gain from asset disposals.
Revenue rose to RM2.55bil from RM2.49bil in FY24.
CIMB Research raised its FY26–FY27 earnings forecasts for MBM Resources by 9% to 10% to reflect the strengthening of the ringgit, which would benefit automakers and component manufacturers, and sustain sales momentum at Perodua.
“Although we project total industry volume to decline 2.5% year-on-year in 2026, we expect Perodua to maintain flattish sales volumes, supported by new model launches, despite intensifying competition from Proton,” it said.
The research house estimated the new Perodua Traz would contribute about 12,000 units in 2026, noting that market reception has been encouraging with 1,901 units registered in January 2026.
However, it anticipated softer demand for the Perodua Bezza amid rising competition from the Proton Saga, while supply chain constraints related to the QV-E are being addressed to lift local production.
CIMB Research maintained its “buy” call on MBM Resources, with a target price of RM6.18, implying seven times FY26 price-earnings ratio, two standard deviations below the Malaysian automotive sector’s five-year mean of 11 times, with projected FY26–FY27 dividend yield of 9% backed by a net cash position of RM215mil as at end-December 2025.
Apex Research also lifted its forecasts after FY25 outperformance, raising FY26/FY27 earnings forecasts by 11.7% and 14.5% to RM343.9mil and RM360mil, respectively.
It expected industry volumes to normalise to 780,000 units in 2026 from a record 820,752 units in 2025, but expected MBM Resources’ earnings to remain resilient due to Perodua’s dominant position, healthy order backlog and recurring associate income.
“We maintain our ‘buy’ recommendation with a higher target price of RM7.04 (from RM6.30), based on eight times FY26 earnings per share of 88 sen,” it said, adding that the valuation reflected a discount to the sector average to account for margin normalisation and competitive intensity risks.
