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Quarterly Report Review #5: JHM CONSOLIDATION BHD (0127) – “Jom Hantam Masuk” or “Jangan Harap More?

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Publish date: Wed, 26 Aug 2020, 07:07 PM

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5G. Electric Vehicles. JHM Consolidated ($JHM 0127) has two hot words that market participants currently love dearly. How much hotter can JHM get? Is it too hot to handle?

JAW’s Take

JHM’s business currently relies heavily on the demand for new automotive sales, especially in North America. As of July 2020, US total vehicle sales have yet to recover back to pre-pandemic levels. China which has a head start in its economic recovery, are still below pre-pandemic levels in terms of number of vehicles sold. Will there be further economic headwinds in the near future to deter its current recovery traction?

 

JHM’s current valuation is obviously on the higher end with market participants pinning hopes on a stronger recovery in the automotive segment and management’s ability to realize the above mentioned growth catalysts.

So, What say you? “Jom Hantam Masuk. All In.” OR “Jangan Harap More. Most of the upsides have been well captured” ?

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