PETALING JAYA: Tan Chong Motor Holdings Bhd
, the sole distributor of Nissan and Renault marques in Malaysia, will be launching three models in the country over this year as the company continues to grapple with competition from Chinese brands.
Analysts remain cautious on the firm’s outlook following its first quarter ended March 31, 2026 (1Q26), results that saw losses narrowing from the quarter before and from 1Q25.
MBSB Research, which maintained its “sell” call and target price of 34 sen, expects losses to continue over its forecast period.
The research house projects a loss of RM132.6mil after tax and minority interests for financial year ending Dec 31, 2026 (FY26), from RM2.2bil in revenue, and a loss of RM123.8mil from RM2.25bil in revenue for FY27.
It noted that management highlighted improving momentum driven by recent and upcoming model launches, although the operating environment remains challenging.
Management said another Nissan e-Power model would be launched in Malaysia in 3Q26 while the remaining two launched would likely be electric vehicles from TQ Wuling, a collaboration with SAIC Motor Corp Ltd and General Motors announced in March 2025.
MBSB Research sees more export opportunities ahead for the company, as management indicated that export opportunities for the Nissan Serena e-Power model could be explored following the successful export of the locally assembled Serena S-Hybrid to Thailand for the first time in late 2024.
“Meanwhile, the Segambut plant could see improved utilisation from the second half of 2026 onwards, driven by the planned production of left-hand-drive GAC GS3 EMZOOM units for export to Vietnam.”
Hong Leong Investment Bank (HLIB) Research, which maintained its “sell” call and target price of 40 sen, said it remains cautious of the company’s subdued sales volume and ongoing competitive pressures, especially from Chinese marques.
“That said, the newly introduced TQ Wuling Bingo has been gaining some traction in 1Q26, while management is guiding for an additional three launches in FY26, following the recent Serena e-Power launch in March 2026.
“Vietnam operations are showing improvement with narrower losses, while Myanmar has remained profitable for the quarter,” HLIB Research said.
“On a brighter note, margins saw some improvement during the quarter, driven by a better sales model mix, ongoing cost discipline and ringgit appreciation.
“The domestic market is expected to remain highly competitive in FY26.”
