PETALING JAYA: DRB-Hicom Bhd
, which delivered a stronger set of first-quarter results for financial year 2026 (1Q26), is expected to record stronger performances in the coming quarters, supported by normalised working days following the extended holiday period in 1Q26.
According to Hong Leong Investment Bank Research, sales of Proton are expected to remain resilient, driven by strong demand for its recently launched models such as Saga and e.MAS, alongside an exciting pipeline of upcoming launches.
The research house said the full consolidation of Spirit AeroSystems Malaysia Sdn Bhd is also expected to contribute positively in financial year 2026, while subsidiary Pos Malaysia Bhd has shown an improved cost structure in 1Q26.
“We upgrade our recommendation to a ‘buy’ with a higher target price of RM1.40 (from RM1.22 previously) based on a 15% discount to the sum-of-parts valuation.”
The group saw its net profit for 1Q26 more than double to RM45mil, from RM17.72mil in the previous corresponding quarter.
Revenue rose 15.7% to RM4.76bil, from RM4.11bil a year earlier.
However, Kenanga Research kept its “underperform” call on the stock due to the significant volatile results performance.
The research house said re-rating catalysts would include sustained sales or margins in the mobility segment and a turnaround of its postal business.
Shares of DRB-Hicom traded at RM1.12 at the time of writing.
