PETALING JAYA: Automotive distributor MBM Resources Bhd
is expected to maintain its sales momentum despite intense competition, as the company leverages on a backlog from 22.6%-owned associate Perusahaan Otomobil Kedua Sdn Bhd (Perodua).
Analysts remained positive on the company’s outlook, with MBSB Research noting that it reported a generally resilient financial year ended Dec 31, 2025 (FY25) earnings on higher Perodua sales and production volumes, together with favourable foreign exchange benefiting the automotive parts arm.
The research house maintained a “buy” call on the stock and raised the target price (TP) to RM6 from RM5.54 after raising FY26 and FY27 earnings by 8%, mainly supported by lower operating expenses and higher associate contributions.
Analysts also pointed to the good response to the newly launched Perodua Traz, which saw some 1,900 units registered in January and over 5,000 bookings.
They projected sales to be stable for Perodua, core to MBM Resources’ earnings in a more challenging automotive market.
CIMB Securities has reiterated a “buy” rating with a TP of RM6.18 on unchanged earnings estimates, adding that the company’s management remained cautiously optimistic for FY26’s outlook, supported by resilient demand for Perodua vehicles despite intense competition in the premium segment and rising popularity of Chinese marques.
“MBM Resources continues to offer an attractive FY26 to FY27 dividend yield of 9%, supported by a healthy net cash position of RM215mil (55 sen per share) as of end-December 2025,” it said.
HLIB Research expected sales volumes to remain resilient at 330,000 to 350,000 units in 2026, with the company’s management sharing that new business opportunities for the automotive parts arm would continue to be explored.
“Although Perodua has yet to provide its official sales target for 2026, we expect sales volumes to remain resilient at 330,000 to 350,000 units,” it said, adding that MBM Resources management had also provided guidance that there were new model launches across its Volvo, Volkswagen and Jaecoo marques in 2026.
It added that sales of the company’s Volvo, Volkswagen and Hino marques were subdued in FY25.
“On a brighter note, Daihatsu commercial vehicles and Jaecoo sports utility vehicle sales showed improvement during the year, while the newly secured Audi dealership gained traction towards the fourth quarter ended Dec 31, 2025,” it said.
Analysts also said Perodua’s newly launched electric vehicle (EV) model, the QV-E, faced temporary issues due to a supply chain problem linked to required quality standards.
“Management is working to resolve these issues before ramping up marketing efforts and positioning the EV more aggressively,” HLIB Research said.
According to MBSB Research, the QV-E has only collected about 200 bookings as of early February 2026.
