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KLSE: MBMR       MBM RESOURCES BHD
Last Price Avg Target Price   Upside/Downside Price Call
2.10 3.08     +0.98 (46.67%)
* 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
08/10/2018 2.10 3.40 +1.30 (61.90%) BUY Rakuten Price Target News
30/08/2018 2.32 3.04 +0.72 (31.03%) BUY HLG Price Target News
30/08/2018 2.32 3.09 +0.77 (33.19%) BUY AmInvest Price Target News
29/08/2018 2.34 3.20 +0.86 (36.75%) BUY MIDF Price Target News
29/08/2018 2.34 3.60 +1.26 (53.85%) BUY KENANGA Price Target News
29/08/2018 2.34 3.04 +0.70 (29.91%) BUY HLG Price Target News
29/08/2018 2.34 3.11 +0.77 (32.91%) BUY AmInvest Price Target News
29/08/2018 2.34 3.27 +0.93 (39.74%) BUY Affin Hwang Capital Price Target News
13/07/2018 2.40 2.87 +0.47 (19.58%) BUY AmInvest Price Target News
02/07/2018 2.38 2.87 +0.49 (20.59%) BUY AmInvest Price Target News
08/06/2018 2.53 3.27 +0.74 (29.25%) BUY Affin Hwang Capital Price Target News
28/05/2018 2.51 2.84 +0.33 (13.15%) BUY HLG Price Target News
28/05/2018 2.51 2.87 +0.36 (14.34%) BUY AMMB Price Target News
24/05/2018 2.50 3.20 +0.70 (28.00%) BUY MIDF Price Target News
24/05/2018 2.50 3.30 +0.80 (32.00%) BUY KENANGA Price Target News
24/05/2018 2.50 2.84 +0.34 (13.60%) BUY HLG Price Target News
24/05/2018 2.50 2.87 +0.37 (14.80%) BUY AMMB Price Target News
24/05/2018 2.50 2.78 +0.28 (11.20%) BUY Affin Hwang Capital Price Target News
02/05/2018 2.39 2.70 +0.31 (12.97%) BUY HLG Price Target News
23/04/2018 2.45 2.70 +0.25 (10.20%) BUY HLG Price Target News


Price Target Research Article/News (past 6 months)
08/10/2018  Rakuten MBM Resources Bhd - Motoring Brighter Move
30/08/2018  HLG MBM Resources - Gearing Up for the Future
30/08/2018  AmInvest MBM Resources - Plans for alloy wheel intact
29/08/2018  MIDF MBM Resources - Solid 2Q18
29/08/2018  KENANGA MBM Resources Bhd - 1H18 Above Expectations
29/08/2018  HLG MBM Resources - Building a Strong FY18
29/08/2018  AmInvest MBM Resources - Strong car sales and OMI efficiency gains
29/08/2018  Affin Hwang Capital MBM Resources - Strong Earnings, Maintain BUY
13/07/2018  AmInvest MBM Resources - Big ambitions for alloy wheel unit
02/07/2018  AmInvest MBM Resources - Leadership change
08/06/2018  Affin Hwang Capital MBM Resources - Alloy Wheel Business: Narrowing Losses
28/05/2018  HLG MBM Resources - OMI to turnaround in FY19
28/05/2018  AMMB MBM Resources - Partnering up for more OMI volume
24/05/2018  MIDF MBM Resources - The Tide Turns
24/05/2018  KENANGA MBM Resources Bhd - 1Q18 Above Expectations
24/05/2018  HLG MBM Resources - In the heat of the moment
24/05/2018  AMMB MBM Resources - Gaining strength
24/05/2018  Affin Hwang Capital MBM Resources - Revving Up
02/05/2018  HLG MBM Resources - Majority Shareholders in Favour of Takeover
23/04/2018  HLG MBM Resources - Visit Note



  leno likes this.
 
KiasiPu Record sales and profit..
28/08/2018 17:49
KiasiPu https://www.malaysiastock.biz/Corporate-Infomation.aspx?securityCode=5983
28/08/2018 17:49
Hafid Share price going to be down. The deal is off
28/08/2018 19:22
Hafid The Group's revenue increased by 22.1% mainly due to the GST holiday which boosted higher car sales
• Contribution from our joint venture and associates also improved
• As a result, profit before tax for the quarter was higher by 118.0% to RM43.2 million
• The Board declared an interim dividend of 3.0 sen per share
28/08/2018 21:00
Hafid For the current quarter, the Group's revenue improved by RM89.4 million or 22.1% to RM493.3 million against the
corresponding quarter. PBT increased by RM23.4 million or 118.0% to close at RM43.2 million due to improved sales from all
Divisions as well as higher profits from both the associates and joint venture entity.
The Group's share of results in it's joint venture improved by RM3.1 million or 236.9% to close at RM4.4 million due to higher
sales and foreign currency gains.
The Group's share of associates' results increased by RM16.0 million or 69.0% against the corresponding quarter to close at
RM39.2 million.
28/08/2018 21:00
davidkkw79 Can mbmr continuously growing ? That is the key factor may affect
29/08/2018 10:31
cricketlast Hi david,

Good question.

For the short term, I believe that MBMR can easily beat their 3Q and 4Q 2017 results.

Beyond 2018, i am still optimistic of this company's earning sustainability (and hopefully growth).

The current government decision to slow down spending in infrastructure project (public transportation in particular) will make Malaysian still dependent on cars as the main mode of transport. In Klang valley for example the LRT3 project which was initially stated to complete by 2020 was push back to 2024.

In addition to this, the potential protective measures for the new automotive policies might prove to be an advantage to local car manufacturers in particular Perodua and Proton which directly help improve MBMR business (MBMR is one of the main local automotive parts manufacturer and assembler. Main clients are Perodua and Proton).

The future SST that is to be introduce in Sept has exempted CKD sedan and hatchback cars which means that the price of Perodua models would most likely remain around the same level as during the tax holiday period.

All these being said, MBMR is currently only trading at 7.5x fwd PE (assuming FY18 PAT of RM120mil).

Pecca, which derive 50% of its revenue from Perodua, is currently trading at 15x PE.

UMW who holds 38% interest in Perodua is currently trading at 19.8x fwd PE (assuming FY18 PAT of RM350)

Thanks
29/08/2018 15:24
chkeong3 best buy counter. tp 3.2
29/08/2018 16:26
cricketlast Just to provide some industry comparable based on 2018 fwd PE. Got this from Kenanga (https://klse.i3investor.com/servlets/ptres/46874.jsp)

Bermaz 12.8x
DRB 12.4x
Sime Darby 23.1x
Tan Chong 20.0x
UMW 18.9x
APM 14.1x
PECCA 11.2x

Average 16.1x


Now for MBMR, Kenanga projected a higher 2018 PAT than me (RM 133.5m vs mine of RM120m)

Their fwd PE for MBMR is only 6.8x.

Thanks
29/08/2018 16:35
Hafid Look like umw is preparing something
31/08/2018 21:43
cricketlast https://www.thestar.com.my/business/business-news/2018/09/03/perodua-cars-1-3pct-cheaper-under-sst-pricing/
03/09/2018 13:09
Hafid Look like proton will fight with perodua. Let see who is the winner
11/09/2018 06:44
Hafid https://www.youtube.com/watch?v=vwgLkbNdgBg
11/09/2018 19:51
Lim Tek Wai Happy ! Good profit everyday hehehe
12/09/2018 11:49
Hafid any news that the umw ceo change
15/09/2018 19:55
Yael Jasper This stock become stronger and stronger, worth to invest
18/09/2018 11:39
Hafid no volume
18/09/2018 11:43
cricketlast Agree with Yael.

3Q18 result should be better than 3Q17 and 2Q18 which will be pushed by the higher sales/invoicing of Perodua vehicles. In 3Q17 there were only 49,811 perodua vehicles invoiced. In 2Q18 there were 54,995 perodua vehicle invoice. A big portion of the bookings made by customer, especially during the tax holiday will be invoiced in the coming quarters.

Total profit for 3Q18 should be highest for this financial year even if the sales in September is expected to be lower.
19/09/2018 09:02
Hafid source: https://www.daihatsu.com/news/2016/20160129-6.pdf

Toyota Motor Corporation (“Toyota”) and Daihatsu Motor Co., Ltd. (“Daihatsu”) announced today that Toyota and Daihatsu signed a share exchange agreement (the “Share Exchange Agreement”) to conduct a share exchange (the “Share Exchange”) in which Daihatsu will become a wholly-owned subsidiary of Toyota and Toyota will become the parent company owning all of the shares of Daihatsu as described below, after both companies adopted resolutions approving the
Share Exchange at their respective meetings of the board of directors held today. The Share Exchange is subject to the approval of the Share Exchange Agreement by shareholders of Daihatsu at its annual general meeting of shareholders scheduled to be held in late June 2016, after which the Share Exchange is expected to become effective on August 1, 2016.
20/09/2018 07:46
Hafid In the brand business, Daihatsu and Hino Motors, Ltd. have principally sold light vehicles and affordable compact
vehicles, and loading-type trucks and commercial vehicles, respectively, under their own brand while also supporting
Toyota’s operations through activities such as the supply of vehicles to Toyota.
20/09/2018 07:47
Hafid Strategy for emerging countries
- Place the top priority on the ASEAN region, including Indonesia and Malaysia where Daihatsu has long cultivated the market, in carrying out its efforts.
20/09/2018 07:51
James Ng https://klse.i3investor.com/blogs/general/175179.jsp
[转贴] [MBM RESOURCES BHD:受益于零税率商品及服务税,由于消费者喜欢较低的汽车价格,销售趋势将持续至第三季度,预期汽车贸易部的表现将维持未来几个季度] - James的股票投资James Share Investing
24/09/2018 13:08
cricketlast How much should MBMR be valued?

For me the minimum valuation for MBMR should be the value of its 22.6% interest in Perodua. When UMW made the offer to buy Med Bumikar 50.07% and subsequently and MGO at RM2.56 per share it was made based on Sum of Parts of MBMR's interest in Perodua and other business division. Total offer amounted to RM 1bil.

At the same they also made an offer to PNB Equity Resources Corporation's 10% interest in Perodua at a valuation of RM417.5mil. This value the total company at RM4.18bil.

At the point of offering, the valuation was made based on Perodua FY17 profit of RM440.2 mil(refer to UMW 2017 annual report page 179 of the financial statement) or at a PE valuation of around 9.5x PE.

Perodua profit for FY2018 will easily hit the RM600mil mark. Using the same valuation multiple UMW used during the offer back in March, Perodua should be valued at a minimum of RM5.7bil. MBMR's 22.6% interest should be valued at least RM1.29bil or RM3.30 per share.

Please take not that this does not include MBMR's other businesses such as Federal Auto Holdings (owner of distribution rights for Volvo and Volkswagen), Daihatsu Malaysia (distributor of Hino trucks and Daihatsu.), Hirotako Holdings (supplier of automotive components) and Oriental Metal Industries (main supplier of steel and alloy wheels in Malaysia. Expected to turnaround in FY19 in collaboration with Citic Dicastal, largest alloy wheel producer in China)

If you think the 9.5x valuation is high, below are the valuation for other automotive companies in Malaysia. Prepared by Kenanga Investment (https://klse.i3investor.com/servlets/ptres/46874.jsp)

Bermaz 12.8x
DRB 12.4x
Sime Darby 23.1x
Tan Chong 20.0x
UMW 18.9x
APM 14.1x
PECCA 11.2x

Average 16.1x
26/09/2018 11:04
yongch Agreed!But this are not Big bosses intention....BUY low Sell high always right!!!All bcoz of politics reason someone willing to let go low price so 2.56 offered.maybe end up2.80 but this are beyond ikan bilis shareholders controlled lo!!!tp 2.56!!!
27/09/2018 10:40
Victor Yong Till 31 Oct next month, the offer from umw at rm2.56. now the price is only 2.1+... If go through, gain 40sen+ per share based on current price.

Undeterred, UMW extends MBM Resources offer for another six months
Khairie Hisyam Aliman
/
theedgemarkets.com

April 27, 2018 20:07 pm +08

-A+A
KUALA LUMPUR (April 27): UMW Holdings Bhd has extended the validity of its takeover offer for control over MBM Resources Bhd (MBMR) for another six months, ahead of a crucial shareholders’ vote to decide on the offer on Monday.

In a filing with Bursa Malaysia today, UMW said its offer to buy a 50.07% stake in MBMR is now valid until Oct 31. This is the second extension after UMW previously extended the validity from March 28 to April 30.

The latest extension is “to enable parties to deliberate on the offers”, UMW said.

[


UMW is offering RM2.56 per share to Med-Bumikar Mara Sdn Bhd for the latter’s 50.07% stake in MBMR. If Med-Bumikar accepts, UMW intends to undertake a mandatory general offer and take MBMR private.

The price tag amounts to RM501 million, valuing MBMR at RM1 billion or 16.36% higher than its market value when the offer was announced on March 9.
27/09/2018 11:36
Victor Yong What if umw starts buying mbmr share from the open market now, much cheaper , right? Geely bought mercedes shares from the open market too , about 10% as reported previously
27/09/2018 12:01
cricketlast Hi victor,
they won't actually do that. Their objective is to consolidate their holdings in perodua. They will only proceed with mbmr if they know they can convince Med Bumikar to sell their 50.07% in MBMR If they were to buy from the open market, they will at max end up with 49.93% of MBMR. They would not be able to consolidate MBMR balance sheet, p&l and cash flow. And worst they would not have control over the company and end up as a minority.

Prevoius negotiation with Med Bumikar hit a roadblock due to the change of govt mainly due to the potential change of heads in Mara, the controlling shareholder of Med Bumikar. This was confirmed yesterday with the appointment of Hasnita Hashim as the new chairman.

That being said, i dont think UMW offer of 2.56 is valid anymore given the higher profit that perodua is expected to achieve in FY2018 onwards.

For me, if UMW do not want to increase the offer, Med Bumikar should reject it. With or without UMW, MBMR is still undervalue given its 22.6% holding in Perodua, leader of the automotive company in Malaysia.
27/09/2018 12:51
Victor Yong Author: HLInvest | Publish date: Wed, 26 Sep 2018, 09:03 AM

The implementation of SST 2.0 (vs. GST) has seen lower pricings for CKD vehicles but higher for CBU vehicles due to exemption on domestic sourced supply chain for CKD vehicles under SST 2.0. OEMs with high localised contents e.g. Proton (DRB) and Perodua (UMW & MBMR) are best positioned to benefit from SST 2.0. Nevertheless we expect overall TIV to take a dip post SST 2.0 implementation, with exceptions on OEMs with exciting new launches such as Proton (X70), Perodua (Axia facelift), Honda (HR-V facelift) and Mazda (CX-3 facelift) to support sales volume in 4Q18. Furthermore, weakening of RM/USD may drag OEMs with USD exposure (e.g. Toyota and Nissan) on higher input costs. We maintain our 2018 TIV assumption at 588.1k units (+2.0% YoY) for now and NEUTRAL rating on the sector. Our top picks are Pecca (BUY; TP: RM1.35), DRB-HICOM (BUY; TP: RM2.80) and MBM Resources (BUY; TP: RM3.04).
27/09/2018 13:24
Victor Yong MBM Resources (BUY; TP: RM3.04). vs umw's offer price 2.56
27/09/2018 13:26
cricketlast Yup.. Everyone including all the analysts that cover the company has a target price that is above umw's offer price.
27/09/2018 13:32
Victor Yong Maybe, raise a bit before Oct 31, :)

UMW says no plans to raise offer for MBM Resources, allocates RM600m for 3 core segments




Posted on 24 May 2018 - 10:08pm
Lee Weng Khuen
sunbiz@thesundaily.com


From left: Badrul Feisal, group chairman Tan Sri Hamad Kama Piah Che Othman, group COO/CFO Azmin Yusoff at the press conference after UMW Holdings' AGM today. The Sun/Zulfadhli Zaki
SHAH ALAM: UMW Holdings Bhd, which has no intention to raise its takeover offer price for MBM Resources Bhd, has budgeted RM600 million in capital expenditure (capex) for its three core segments after its full exit from the oil and gas business within the year.

Of that, RM200 million will be for the automotive and equipment segments each, RM100 million for manufacturing and engineering, and the remaining RM100 million for the aerospace expansion plan in Serendah, Selangor.

"On the Serendah land, we have a high value manufacturing plant there, so we try to expand in that area," UMW president and group CEO Badrul Feisal Abdul Rahim told a press conference after its AGM here today.

He believes the "worst is over" for the group, but it will take some time before reaching what it had achieved prior to 2014. "It will take time but definitely it will be in the black."

UMW's net profit jumped nearly four times to RM74.08 million for the first quarter ended March 31, 2018 against RM20.17 million in the previous corresponding period.

Badrul Feisal said the group's second new Toyota plant is expected to be completed by year-end and be operational early next year.

Automotive is the largest revenue contributor for UMW, but he cautioned that Toyota has been facing stiff competition, especially from Honda, despite new model launches this year.

Toyota car sales in Malaysia are estimated at 70,000 units this year, while Perodua is expected to sell 209,000 units.

With the replacement of the Goods and Services Tax by the Sales and Services Tax, Badrul Feisal said car prices will probably increase.

For the manufacturing and engineering segment, he revealed that the group plans to expand into medical device manufacturing.

UMW is unfazed by the review of mega projects in the country as a result of the change in the federal government, as 70% of its heavy equipment orders are derived from the overseas markets.

On the MBM bid, Badrul Feisal said UMW has not changed its mind on the offer price despite numerous rejections.

"We've extended the offer period. It's up to them to evaluate whether to sell or not. We still stick to the position (of not raising the offer price), until a time when it is suitable to address."

MBM has stood firm on not accepting the deal due to the "unreasonable" pricing of RM501 million or RM2.56 per share, despite major shareholder Med-Bumikar Mara Sdn Bhd reportedly expressing interest in disposing of the stake.

Last month, UMW Holdings Bhd extended its takeover offer period for MBM by six months, from April 30 till Oct 31. The jewel in MBM is its 22.58% stake in Perusahaan Otomobil Kedua Sdn Bhd (Perodua).

An extension was also given to PNB Equity Resource Corporation Sdn Bhd, which owns 10% of Perodua. UMW has yet to receive a response.
27/09/2018 14:33
Victor Yong EPF is dumping mbmr shares..its price is getting lower and lower . now, easier for umw to negotiate with mbmr, right? :)

EMPLOYEES PROVIDENT FUND BOARD 25-Sep-2018 Disposed 13,700 0.000 View Detail
EMPLOYEES PROVIDENT FUND BOARD 19-Sep-2018 Disposed 7,000 0.000 View Detail
EMPLOYEES PROVIDENT FUND BOARD 18-Sep-2018 Disposed 13,900 0.000 View Detail
EMPLOYEES PROVIDENT FUND BOARD 14-Sep-2018 Disposed 30,700 0.000 View Detail
EMPLOYEES PROVIDENT FUND BOARD 13-Sep-2018 Disposed 10,000 0.000 View Detail
EMPLOYEES PROVIDENT FUND BOARD 29-Aug-2018 Disposed 40,900 0.000 View Detail
EMPLOYEES PROVIDENT FUND BOARD 29-Aug-2018 Disposed 13,600 0.000 View Detail
EMPLOYEES PROVIDENT FUND BOARD 28-Aug-2018 Disposed 598,600 0.000 View Detail
EMPLOYEES PROVIDENT FUND BOARD 20-Aug-2018 Disposed 10,000 0.000 View Detail
EMPLOYEES PROVIDENT FUND BOARD 20-Aug-2018 Disposed 27,600 0.000 View Detail
EMPLOYEES PROVIDENT FUND BOARD 17-Aug-2018 Disposed 9,100 0.000 View Detail
EMPLOYEES PROVIDENT FUND BOARD 10-Aug-2018 Disposed 123,400 0.000 View Detail
EMPLOYEES PROVIDENT FUND BOARD 10-Aug-2018 Disposed 56,500 0.000 View Detail
EMPLOYEES PROVIDENT FUND BOARD 10-Aug-2018 Disposed 18,700 0.000 View Detail
EMPLOYEES PROVIDENT FUND BOARD 09-Aug-2018 Disposed 25,000 0.000 View Detail
EMPLOYEES PROVIDENT FUND BOARD 09-Aug-2018 Disposed 22,500 0.000 View Detail
EMPLOYEES PROVIDENT FUND BOARD 09-Aug-2018 Disposed 10,000 0.000 View Detail
27/09/2018 15:36
cricketlast Hi Victor,

Yes could be. Also noticed that EPF is also continuously buying UMW. So maybe they believe that a deal could be reach in the future.

However, i believe its safer for you to look at the company's fundamental first when deciding on whether to invest in a company or not. From my personal assessment, MBMR is currently trading at a very undemanding valuation of less than 7x PE with future profit growth intact. The average PE for other automotive companies is currently more than 15x PE (double to that of MBMR).

A deal with UMW for me is a bonus for investors to monetize their investment earlier. That being said it should only be done at a right price off course.
27/09/2018 16:15
Victor Yong Mbmr should buyback its own shares... Dividend yield is unattractive
27/09/2018 16:38
Victor Yong mbmr should buyback more shares so that existing shareholders could exit if they are unhappy with the low dividend yield for many years
27/09/2018 16:43
cricketlast Hi Victor,

Understand your dissatisfaction for the low dividend payment. But i think in the future they will be able to pay higher dividend.

The main reason to why they did not pay good dividend previously was because management believes its better to used the money to pay the debt first.

If you look at their annual or quarterly report, back in 2012 their total debt was at RM550mil with net debt (after deducting cash balance) at RM260mil. Net gearing was 16.7% (not that high actually).

As of June 2018, their debt is now at RM220mil with net debt at only RM40mil. Net gearing is only at 2.2%.

Please take note that for manufacturers in general (you could verify this with other listed manufacturers), they used debt for working capital in order to finance their inventories. So basically the short term debt is actually been backed by inventories and receivables (sales yet to be turned to cash).

For MBMR, the cash conversion cycle in 2017 was 42 days which is quite good for a manufacturer.

Basically, i also hope they will start paying more dividend in the future. If management can commit to a minimum payout ratio to investors, it would be a lot better especially for those investors that depends on dividend (EPF, PNB, Tabung Haji, Kwap etc). They might start to add more position in this company.
27/09/2018 17:17
cricketlast And victor,

They also needed the money for the alloy wheel manufacturing plant previously.

Now there is not much of capex needed apart from the RM12 mil for the expansion of the alloy wheel plant in order to increased the max capacity form 750k wheels to 1 mil unit per year.

The partnership with Citic Dicastal (China biggest alloy wheel manufacturer), will hopefully increase orders for the alloy wheel from only 300k units in FY17 to at least 700k units by FY19.
27/09/2018 17:28
Victor Yong interesting .... :)
27/09/2018 17:44
Hafid mbmr deal with umw cancel
02/10/2018 15:12
yongch Yes due to offer price too low n new suv was delayed worst part alloy wheels business deep losing in coming quater.....tp1.70!!!!!this time really jialat lo!!!!
02/10/2018 19:00
Hafid Better sell
02/10/2018 21:16
cricketlast Hi Yong,

Why did you say the alloy wheels business is going to have a big loss in coming quarters?

I actually believes that they are on track for a break even level in FY19 backed by increase export volume from their partnership with Citic Dicastal, China largest alloy wheel manufacturer as well as the new SUV launched by both Proton and Perodua.

The new SUV was delays to Feb 2019 instead of Dec 2018 was mainly for strategic marketing reason in anticipating for the launch of Proton's X70. Perodua do not want their marketing campaign to be diluted by the launch of the X70. However in term of market segments, these 2 SUVs are actually fall under different markets. The X70 is expected to be priced between RM98k to RM112k (https://www.zigwheels.my/new-cars/proton/x70) whereelse Perodua New SUV is expected to be priced at between RM70k to RM80k.

On the deal, if UMW sticks to their price of RM2.56, i think management should reject the offer. The next 2 quarters will show good growth vs last year's results mainly from the good results from Perodua. However, the deal actually depends mainly on Mara who since July has control over the board of Med Bumikar (holder of 50.07% of MBMR). They had just reappointed a new chairwoman and had changed most of the composition of the board members last week.

Deal or no deal, at the current price of RM2.04, MBMR is only valued at 6.6x PE (assuming FY18 PATAMI of RM120mil. 1H PATAMI is already at RM67.5m). Current average PE for other automotive players is above 15x.
03/10/2018 07:02
Hafid everyday down. look like not end
03/10/2018 19:23
Saw CL Recommended buy with tp of 3.40!
08/10/2018 09:40
Hafid any research
08/10/2018 11:09
cricketlast Hi Saw,

Yes. there is no denying that MBMR is currently trading at a very undemanding valuation of less than 7x 2018 PE compared to the industry average of 15x PE.

All 6 research house has a buy rating on the stock with an average TP of RM3.24 per share or 54% above the current share price of RM2.10.
08/10/2018 12:07
Hafid Market capitalization: 813.04
Dividend yield: 2.16
EPS(actual): -0.35
P/E Ratio(actual)NAP/E Ratio(estimate): 6.57
08/10/2018 14:24
cricketlast Hi hafid,

For 12 month trailing PAT, you need to take out all of the impairment occurred in 3Q and 4Q FY2017 which amounts to RM 253mil as this in non recurring, non operation and non cash in nature.

As indicated by the chairman during the AGM, there will be no more impairment planned going forward as most of the impairment were done in FY17 (mostly related to the Hirotako Holdings, Autoliv Hirotako and the alloy wheel businesses).

Excluding the impairments the total PATAMI for 3Q and 4Q 17 would be around RM50mil.
This translate to a 12 month trailing PATAMI of RM117.4mil or an EPS of 0.30 per share.

In terms of valuation , the 12 months trailing PE is 6.99x
08/10/2018 14:36
cricketlast The stock is currently oversold given the current price of 1.95. Which is the lowest since 2012 (7 years). The last time the stock traded at this price was way back in 2015 when the company recorded a Patami of RM8m and RM7m for 3Q15 and 4Q15 respectively. The low profit back then was mostly due to the statrt up loss of the alloy wheel manufacturing which this year has improve their operations substantially. The business is expected to be breakeven in FY19.

Profit for FY18 is expected to reach the RM120mil level. Which currently values the company at a mere 6.35x PE.
12/10/2018 09:08
cricketlast Another big potential for this company that analysts did not highlight is the market trend of Malaysian consumers in the automotive industries.

As shown by other global markets, the segment that currently have the biggest growth is the SUV segment. Malaysia's SUV penetration rate in 2017 was 11.5% but expected to grow to 20% in 2020 and to a further 30% by 2025.

Perodua (where MBMR holds 22.6% interest) will be one of the players that is expected to benefit from this shift of trend especially given that they are expected to price their new SUV (schedule to launch in Feb 2019) at a price range of between 70k -80k. This would mean that their SUV will be one of the cheapest (if not the cheapest) offering to the Malaysian consumers.

Their confidence in the SUV is shown by their decision to start with the production of the new SUV this month (as per originally schedule) even though launching will only be made in Feb. I believe this is a strategic decision made in order to make sure that any future demand of the SUV can be delivered on time to the customers.

Assuming SUV segment would command better margins, i would assume that the Perodua and MBMR indirectly (the alloy wheel for Perodua and Proton SUV will be supplied by MBMR) will post better profit in 2019.
15/10/2018 12:16


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 HIBISCS 1.23-0.04 
 HSI-C3V 0.195-0.065 
 BORNOIL 0.045-0.005 
 DSONIC 0.435-0.02 
 HSI-H4O 0.685+0.14 
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