PETALING JAYA: MBM Resources Bhd
’s recent share price weakness, which has brought the stock close to its 52-week low, presents an attractive buying opportunity ahead of an expected recovery in second- half (2H26) earnings.
RHB Research said the automotive group is supported by expectations of seasonally stronger vehicle sales in 2H26, an estimated financial year 2027 dividend yield of approximately 11%, and an undemanding valuation, with the stock trading at around 5.8 times forward earnings, or one standard deviation below its five-year average.
RHB Research expects MBM to post stronger quarter-on-quarter (q-o-q) and year-on-year (y-o-y) results for the previous half ended June 30, 2026, when it announces its earnings on Aug 27.
Earnings are forecast at between RM70mil and RM80mil, underpinned by stronger Perodua sales, with dividend per share of six sen to seven sen expected to be declared.
Perodua sold 84,062 vehicles in the second quarter (2Q), up 13% q-o-q and 4% y-o-y, driven by more working days and a recovery in sales of the Perodua Traz, which recorded approximately 11,000 units sold in 1H26.
RHB Research also expects consumer sentiment to improve gradually as macroeconomic conditions recover.
It noted that June’s inflation rate of 1.9% came in below expectations, while stronger gross domestic product growth prospects, a resilient labour market, rising household incomes and a stable Overnight Policy Rate should continue to support vehicle demand.
In addition, loan approval rates improved to 55% in June from 53% a year earlier, indicating a more supportive financing environment.
It believes the 1Q was likely MBM’s weakest quarter this year, as production was affected by the Hari Raya Aidilfitri and Chinese New Year holidays, as well as two plant maintenance shutdowns.
Reflecting stronger assumptions for Perodua’s sales and total industry volume, RHB raised earnings forecasts for MBM by 4% for FY26 and FY27, and by 3% for FY28.
