When investors invest in stocks, they are essentially investing in the company’s prospects and its fundamental business. However, with all the information available, which information should you focus on?

For this report, you will discover a hidden gem of a Malaysia-listed company whose stock price has haven’t moved since the company involved in the electric vehicle: DRB-Hicom Berhad one of Malaysia's leading corporations, involved in the automotive manufacturing, assembly and distribution industry through its involvement in the passenger car and four-wheel drive vehicle market segment, the national truck project and the national motorcycle project.

In this exclusive report, it will cover:

• The competitive advantage of the company
• Recent new developments in the company
• Insights that shareholders should pay attention to in the short to medium term.
• The availability of public chargers for electric vehicles (EV).
• And many more!

The competitive advantage of the company

DRB-Hicom is the majority shareholder of the national car company Proton, with China’s Zhejiang Geely Holding Group as the other shareholder since an equity sale in 2017. Geely owns 49.9% substantial shareholder in Proton Holdings Bhd.

DRB-Hicom also owns the national motorcycle company Modenas, with Japanese two-wheeler giant Kawasaki as its partner. DRB-Hicom also assembles cars in Malaysia for Tata Motors, Honda, Isuzu, Mercedes-Benz and Volkswagen.

Recent new developments in the company

Recent Strong Growth:

·       Proton

https://www.theedgemarkets.com/article/proton-track-achieve-best-sales-2013-after-selling-126682-units-jannov

Will Quarter 4 2022 upcoming results with more surprising upside? The upcoming result hasn’t incorporated any sales of EV cars that going to start in FY2023.

Proton: October and November car sales volume published as below. How good it will be for December 2022?

With the upcoming result, assuming EPS maintain the same as per the previous quarter. (Estimation)

Peer analysis:

Fair Value via standard PE valuation = RM2.45 (Potential Upside 67%)

DRB-Hicom is one of the undervalued automotive players in the market based on price to book ratio. Their joint venture partner, Geely is enjoying high growth in the EV sector. Will they be able to increase the profit of DRB-Hicom once the EV car launch in FY2023?

·       Geely

https://www.marketscreener.com/quote/stock/GEELY-AUTOMOBILE-HOLDINGS-6165704/news/Geely-Posts-195-Jump-in-November-Sales-of-Pure-Electric-Vehicles-42494728/

Insights that shareholders should pay attention to in the short to medium term.

·       Is Syed Mokhtar consolidating his interests in DRB-Hicom?

https://www.theedgemarkets.com/article/syed-mokhtar-consolidating-his-interests-drbhicom

If yes, what is his takeover price? Given a NTA of RM3.83. The current share price as of 7/12/2022 is just RM1.48.

·       POS

https://www.pos.com.my/pressroom/pos-malaysia-s-nine-month-losses-narrow.html

Syed Mokhtar controls 56% of DRB-Hicom, which in turn owns a 53.49% stake in Pos Malaysia. Pos Malaysia, which owns the largest branch network nationwide, narrow it losses and going to improve DRB-Hicom profits as well.

The availability of public chargers

MALAYSIA is the first country in Southeast Asia to have an operational 350kW public charger for electric vehicles (EV). Gentari, one of Petronas subsidiaries has deployed 117 charging points across 20 locations in Malaysia and a total of 133 charging points in India since its introduction in June this year.

It aims to capture a 10 per cent market share (circa 25,000 charging points based on current estimates) across key markets in Asia Pacific by 2030, with a mission to be Asia Pacific's preferred green mobility solutions provider.

Its mid-term aim is to install 9,000 public charging points by 2026, with an anchored presence in Malaysia and India.

Adopted from:

https://www.nst.com.my/news-cars-bikes-trucks/2022/11/856363/gentari-evc-launches-southeast-asias-first-350kw-ev-super

14 DEC 2022 NEWS UPDATE

The government will look into ways to bring affordable electric vehicles (EVs) priced below RM100,000 into the local market to benefit the people, said Natural Resources, Environment and Climate Change Minister Nik Nazmi Nik Ahmad.

"Proton will bring in Geely vehicles in the near future (but) if we can assemble the vehicles in Malaysia, maybe it will help us to offer EVs (at a) lower cost," he said at a press conference after officiating at the Bangi Golf Resort EV Charging Station launching ceremony and the handing over of the EV charging system public distribution licence by the Energy Commission here on Wednesday.


Ref :

https://www.theedgemarkets.com/article/govt-look-ways-bring-affordable-evs-%E2%80%94-nik-nazmi

​

​
​

Disclaimer

This information only serves as reference information and does not constitute a buy or sell call. Conduct your own research and assessment before deciding to buy or sell any stock