Stock Price Target

Recent Price Targets: [Sign In or Register (FREE) to view]
Last Price Avg Target Price   Upside/Downside Price Call
2.45 2.44     -0.01 (0.41%)
* Average Target Price, Price Call and Upside/Downside are derived from Price Targets in the past 6 months.
** Price Targets are adjusted for Bonus Issue, Shares Split & Shares Consolidation (where applicable).
Date Open Price Target Price Upside/Downside Price Call Source News
12/03/2018 2.47 2.85 +0.38 (15.38%) BUY KENANGA Price Target News
12/03/2018 2.47 2.70 +0.23 (9.31%) BUY HLG Price Target News
26/02/2018 2.27 2.85 +0.58 (25.55%) BUY KENANGA Price Target News
26/02/2018 2.27 2.70 +0.43 (18.94%) BUY HLG Price Target News
23/02/2018 2.20 2.85 +0.65 (29.55%) BUY KENANGA Price Target News
23/02/2018 2.20 2.68 +0.48 (21.82%) BUY HLG Price Target News
23/02/2018 2.20 2.27 +0.07 (3.18%) HOLD Affin Hwang Capital Price Target News
13/02/2018 2.30 2.68 +0.38 (16.52%) BUY HLG Price Target News
13/02/2018 2.30 2.20 -0.10 (4.35%) HOLD AMMB Price Target News
23/11/2017 2.11 2.45 +0.34 (16.11%) BUY MIDF Price Target News
23/11/2017 2.11 2.20 +0.09 (4.27%) HOLD KENANGA Price Target News
23/11/2017 2.11 2.54 +0.43 (20.38%) BUY HLG Price Target News
23/11/2017 2.11 2.10 -0.01 (0.47%) HOLD Affin Hwang Capital Price Target News
16/11/2017 2.16 2.45 +0.29 (13.43%) BUY MIDF Price Target News

Price Target Research Article/News (past 6 months)
12/03/2018  KENANGA MBM Resources Bhd - Letter of Offer for 50.07% Stake by UMW
12/03/2018  HLG MBM Resources - UMWH Proposes to Acquire MBMR
26/02/2018  KENANGA MBM Resources Bhd - Better Position in FY18
26/02/2018  HLG MBM Resources - Focus on Cost Efficiency to Lift Earnings
23/02/2018  KENANGA MBM Resources Bhd - FY17 Above Expectations
23/02/2018  HLG MBM Resources - FY17: Above Expectation
23/02/2018  Affin Hwang Capital MBM Resources - Pacing for Growth
13/02/2018  HLG MBM Resources - Acquisition of Remaining 22% Stake in OMI
13/02/2018  AMMB MBM Resources - Consolidating ownership of OMI
23/11/2017  MIDF MBM Resources - Inflection Point Came Earlier Than Expected
23/11/2017  KENANGA MBM Resources Bhd - Broadly Within Expectation
23/11/2017  HLG MBM Resources - 3Q17 in Line
23/11/2017  Affin Hwang Capital MBM Resources - 3QFY17: Within Expectations
16/11/2017  MIDF MBM - Deep Value Play

  leno likes this.
bachalet https://www.thestar.com.my/business/business-news/2017/12/16/mbm-gaining-traction/
20/12/2017 05:02
bachalet Going through their 2016 annual report and notice that Perodua has no debt at all in their balance sheet. The value of mbmr stake in perodua itself is higher than its market cap.

Wondering why the other big automotive players are not looking to acquire the company given it is steeply undervalue? Can easily help them in providing the profit growth for the future..

Expect a better performance starting 4Q of 2017.
20/12/2017 09:19
wklee9113 Why DRB can increase so much and mbmr can't increase
02/01/2018 20:17
Lau333 Auto loan growth decreased by -1.0% YoY for Nov, which signals sluggish growth for TIV as confirmed by Paul Tan’s data for Nov +0.2% YoY and +4.6% MoM.

Even worse, auto loan application actually contracted which indicates the root of auto industry’s malaise may lie with the consumer demand (which is harder to solve) rather than just difficulty to get loan.

There are two catalyst for MBMR:- volume growth and shift towards higher margin product mix. Of course, now with additional factor of stronger Ringgit vs yen. So, a shift back to profit margin of ~5% together with stronger Ringgit will probably provide just enough fuel for price to rise to around RM2.35-RM2.55. To go beyond, probably need volume growth in 2018.
04/01/2018 21:52
ivan9511 this ine one of course is buy so cheap buy all in also can
sure good dividend good company
business is future good
14/02/2018 15:01
Lau333 Anticipating a cup and handle formation? Wait for the break of the flag pattern for a push to 2.70-2.80 (based on the height of the cup)…Results should be coming soon at max 9 days!
19/02/2018 21:50
nich0las QR PBT -202Mil
22/02/2018 18:40
Lau333 Result not satisfactory. Hit by impairment adjustments totaled to RM242.5 million for the quarter. Even core also not nice, an associate profit down 23.5%. JV reduced by 34.4%....
22/02/2018 18:43
yfchong pengsan liao....must read q ..... fr alloy wheels
22/02/2018 19:05
Mohd Fahmi Bin Jaes Limit down
22/02/2018 20:26
ivan9511 All go in con lori luar
Tomorroe all close yee no eye
No eye see
23/02/2018 01:57
yfchong sure.... goes rm 1...
23/02/2018 06:45
Lee Yih Yeong si liao
23/02/2018 07:53
yfchong suspend immediately....
23/02/2018 08:42
shareinvestor88 Massive losses . Sell TP 50c
23/02/2018 08:43
Lau333 MBMR is holding better than expected.
23/02/2018 09:37
yfchong still have 3 months epf sneeze..

epf sneeze...
23/02/2018 10:31
Matthieu Seven seem like still solid like rock
23/02/2018 11:09
yongch This counter like roller coaster....on 5/3 up9cents..end down 8cents...:(
06/03/2018 12:39
bachalet Hi yongch,

That is because there is no liquidity in the stock. The spread between the buy and sell order is a bit wide.

Hopefully the gap will reduce once the market becomes more interested in the stock. I think 2018 will be the turnaround year for MBMR mainly driven by the results coming from Perodua.

Perodua new Myvi has exceed expectation both in the sales numbers but more importantly in the sales of their premium version of Myvi which will provide better margins (profit to Perodua).

The strengthening of ringgit vs USD will also help reduce the input cost for Perodua and also for the manufacturing arm of MBMR.

In addition, the impairment of goodwill (RM145.6m) relating to Hirotako Holdings acquisition (back in 2012), the impairment of investment in Autolive Hirotako (RM52.9m) and impairment of PPE of the alloy wheel division (RM61.7m) will reduce the annual depreciation and amortization charge of the group which itself will help increase the profit.

Bare in mind that the 22.6% in Perodua itself is already valued at around RM1.1b (or RM2.80 per share) which is higher than MBMR current market cap of only RM887m. This also means that the other business is practically free at the moment.

A steel and aluminium tariff by the US will actually help MBMR (& Perodua) given that it will actually flood the global market with access steel and aluminium hence reduce their price. Which means cheaper raw material for our domestic automotive companies.

Feel free to comment if anyone don't agree on the assessment. Would like to know also other people views on the company prospect.

07/03/2018 20:19
yongch I like this boss whether make more or less still dividend given away...even half cents also show his work hard n respect!!!tp2.5!!!!
07/03/2018 20:26
resilient911 https://www.klsescreener.com/v2/announcements/view/28831769
09/03/2018 19:31
gsi723 Next week 2.50
09/03/2018 23:04
MrPauper Some parties might take the opportunity on Monday to try cooking it up to that level but the Mandatory General Offer most probably will not be as high as the average RM2.56 paid by UMW to obtain a controlling stake in MBMR. They might just start off with an offer of around RM2.30 for the Minority holders
09/03/2018 23:22
cricketlast Hi mr pauper,
The MGO will be the same offer as the one made to Med Bumikar. So it will still be RM2.56.

Refer to page 4 of the announcement.

10/03/2018 04:35
Lau333 Still maintain listing post take over. That is a big vote of confidence.
10/03/2018 06:53
kmohan62 Watchout....novice investors....classic pump and dump on the way...
10/03/2018 12:48
gsi723 2.56 also like inadequate offer... 3.00 only ok...
10/03/2018 22:14
gsi723 Doesn't make sense to pay minority's holder less..
10/03/2018 22:15
cricketlast Hi lau,

Umw does not want to maintain the listing status of mbmr actually.
Please refer to the announcement made by umw holdings. Page 1


11/03/2018 00:40
cricketlast Hi gsi,

Agree with u on the offer being too low. At rm2.56, it only represent 70% of the company's total book value of 3.68.
At least they should have offer something that is near to the book value of mbmr 22.6% in perodua. End of financial year 2016 it was rm1.1b or rm2.80 per share. End of 2017, should be higher.

So agreed that the offer should have been around rm3 for it to be reasonable.
11/03/2018 01:18
BigMoney Yes, the offer is too Low...
11/03/2018 08:36
Lau333 @ Cricketlast, indeed quoted in the announcement on the listing status. Thanks for highlighting. I also concur that UMW undervalue MBMR. Perodua is valued at RM 4.18b. Given MBMR 22.58% stake in Perodua and market capitalization @ RM 2.56 plus debt of RM 1.08b, UMW values other MBMR businesses are mere RM 140m only. At 50.1% stake already acquired, there is still sizeable stake not owned yet... Would UMW be successful in MGO to take MBMR private?
11/03/2018 13:12
Hafid It is fair price because mbmr other business is not making.much money.
11/03/2018 18:24
cricketlast Hi lau,

I am also not sure if the other minorities would accept their low offer. Take epf for example, they have been an investor of mbmr even before 2016 when the share price was traded above rm2.60 (at least since 2012 and most of the time it was higher than rm3.) It was only in 2016 that the share price actually go below rm2.60 level. And given the better prospect of perodua at the moment due to the strengthening of ringgit as well as introduction of new car models (myvi and the new suv expected in 4q18) i can only assume that mbmr financials will only get better. Even the alloy wheel business are showing good growth with breakeven targetted somtime in 2019.

I am not sure that epf would want to divest their stake now with an offer price that really do not take into account the better prospect of MBMR.

I am sure the independent advisor would say that this deal is not fair and not reasonable for the minorities of mbmr.

How much would umw needs for it to take mbmr private? Is it 90%? Hopefully they can revised their offer price if the feedback from minorities are not that great..

What do u think?

11/03/2018 19:43
Hafid Umw can walk always without the deal. But unlikely.
11/03/2018 20:13
Hafid It just like goldis where it takeover igb at lower price. At the end of the day it go through
11/03/2018 20:13
cricketlast Hi hafid,

Yup. There is always the possibility that it will go thru.

I think for umw the main offer that will need to go through is the current offer to med bumikar (control 50.1% of mbmr). Once they have gotten the majority interest in mbmr, they can consolodate both the income statement and balance sheet into umw financials (however with high non controlling interest portion).

At the same time they will also get majority position in perodua with a total of 59% int (upon completion of pnb equity resources 10% in perodua as well as the int held by mbmr).

Then umw will need to make a decision on whether they want to have mbmr as a listed entity or not. They will need to acquire at least 90% interest (i think, appreciate if someone could confirm this) for them to take mbmr private. For me, anything below the nta (rm3.68) makes sence for umw as it will be a value accreative transaction. And the nta is expected to only go up as long as perodua makes profit (which is most likely the case). Umw is currently trading at 2.2x their NTA.

Anyway for the minorities, if the deal with med bumikar goes through, the min price for the shares that they are holding will be rm2.56. If umw really wants mbmr for themselves, minorities might get a better deal than what is being offered at the moment.

Appreciate any comments.

11/03/2018 21:03
cricketlast Guys,

Extract from a legal website on the privatisation regulation of a listed company:

22. What action is required to de-list a company?
The target is allowed to de-list where a takeover offer has resulted in 90% or more of the listed shares being held by the bidder or its PACs. However, in cases where the bidder and its PACs do not hold 90% or more of the listed shares, the target is only permitted to request de-listing where:
The target convenes a general meeting to obtain approval from its shareholders and sends a circular, in the prescribed form, to the shareholders. A separate meeting and circular may be necessary for holders of any other class of listed securities.
The resolution for withdrawal is approved by a majority in number representing 75% of the value of the shareholders (and holders of any other class of listed securities) present and voting either in person or by proxy at the meeting. The proportion of shareholders or holders of other classes of listed securities objecting to the withdrawal at the meeting must not be more than 10% in value.
The shareholders (and holders of other classes of listed securities) are offered a reasonable cash alternative or other reasonable alternative for their shares (exit offer).
An independent adviser has been appointed to advise and make recommendations to the shareholders (and holders of other classes of listed securities) in connection with the de-listing as well as the fairness and reasonableness of the exit offer.
If the bidder has achieved acceptances rendering the offer unconditional, but falls short of the compulsory purchase threshold, the bidder will have to launch a second takeover offer to satisfy the exit offer requirement (see Question 20, Compulsory purchase of minority shareholdings).


1) to take private MBMR, UMW will need 90% interest.
2) if not, have to do a general meeting and get 75% voting rights to take it private. AND not more than 10% of the shareholders reject the privatisation proposal.

12/03/2018 00:23
tonylim correct
12/03/2018 01:14
Lau333 The deal is between UMW as the purchaser and Med Bumikar & Central Shore as the Vendor. Only shareholders of UMW have the right to vote on the deal. Under the takeover rules, UMW is required to extend a mandatory take offer to acquire all the remaining MBMR shares. So, a minority MBMR shareholder doesn’t have the right to vote on the deal but a choice to accept or reject the offer.

2ndly, EPF is an interest party. Latest report indicates EPF has 9.19% stake in UMW (AR2016) and 15.81% stake in MBMR. So, their interest MAY NOT align with minority shareholders. The statement that UMW is not intending to maintain listing status of MBMR gives hint that UMW probably has secured substantial amount of shareholders' commitment to accept the offer. Not too hard to see..add together UMW, EPF and other government based institutional funds, the interested party should hold ~70% of the total share. I would expect more non-government funds to accept as well due to concern of the share liquidities post UMW's acquisition.

MBMR is however obliged to present a 3rd party advice to the shareholders before the acceptance date closure. For those who intend to hold on to the share, the report may represent their last hope to force UMW to raise the offer price. Too bad, shareholders' activism in Malaysia is too weak down to almost non-existance. Things of course would change dramatically better provided another party enters into the frame and starts a bidding war, though chances of that is very very low.
12/03/2018 05:42
dompeilee dompeilee Bought some MBMR @ 2.05...Gonna b sizzling hot soon !:

16/10/2017 16:04

Another JACKPOT after KSSC !!!!!! SOLD 1/2 @ 2.48-2.50!!! :D
12/03/2018 09:18
cricketlast Most analysts (Hong Leong, Kenanga, MIDF, TA securities etc) view the offer price of RM2.56 as unattractive. I am sure that the price has already been agreed with med bumikar and PNB Equity Resources even before the announcement was made last Friday.
PNB is actually the major shareholder of UMW anyway, this could also be seen as a restructuring of PNB holdings in Perodua to be put all in UMW. Better corporate structure for PNB and at the same time help increase the value of UMW.
I think the main question is how much do UMW want MBMR (all to themselves). As i mentioned earlier in my previous comments, anything below the NTA of MBMR (RM3.68) is actually attractive for UMW. But i don't think we can expect UMW to increase their offer to that price.
But i think it would be fairer to the minorities (EPF especially) that has stayed invested in the company during the past 2 years, when ringgit has depreciated and sales deteriorate, to be fairly compensated at valuation of at least 1x book value of their holdings in Perodua (since that is actually the main reason as to why UMW is acquiring MBMR) which is something in the range on RM2.80.

What's your view?

13/03/2018 05:36
yongch 2.80?no need la ...I think u still don familiar wz pnb boss tan sri character...2.56cukup lo...if u Don sell he will help u end up force u to sell...look at today open 2.45 n yesterday highest 2.51 then u know many are waiting waiting n they r also no rush....soon u will know!!!
13/03/2018 09:32
Hafid Maybe the deal will revised. What do you think.
14/03/2018 05:27
Hafid On March 9, UMW offered to buy all the o shares in MBM Resources held by Med-Bumikar Mara and Central Shore collectively representing a 50.07% interest in MBM Resources for RM501mil, or RM2.56 apiece.

Currently, MBM Resources holds a 22.58% effective equity interest in Perodua.

If UMW’s proposal is accepted, then its shareholding will rise from nil to 50.07% in MBM Resources, and UMW will be obliged to extend a mandatory general offer for the rest of MBM Resources’ minority shareholders.

Separately, UMW has also proposed to additionally acquire 14 million ordinary shares, or 10%, in Perodua held by PNB Equity Resource Corp Sdn Bhd (PERC), at a price of RM417.5mil, or RM29.80 apiece. PERC is the private equity investment arm of PNB.
Read more at https://www.thestar.com.my/business/business-news/2018/03/13/umw-proposes-rm1pt1bil-rights-issue-in-takeover-of-mbm-resources/#EjufpXSeDGWZX3ik.99
14/03/2018 05:29
yongch Hahaha...PNB acquired@2.56...but look at this counter now...no up but down....means most ikan bilis not agreed ....tp2.20 or tan sri got to raised up offer price at least 2.68 lo!!!!kikiki...ini Kali lo...still millions waiting....no rush!!!
14/03/2018 10:13
Lau333 There is another options for MBMR shareholder: exchange to UMW share at 21 new UMW share for every 50 MBMR share. Could be a better choice as long as UMW share is staying above 6.09 (excluding brokerages fees, stamp duty and clearing fee)...

14/03/2018 12:38
Hafid mbmr now is 2.44. the price on the way down. maybe the deal will not go through and will go back to 2.10
14/03/2018 16:00
Hafid May go to 3.01
17/03/2018 22:02

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