(BAUTO MK/HOLD/RM2.11/Target: RM2.05)

BAuto is expected to make a comeback in FY18, driven by the all-new CX-5 to be launched in Sep 17 and the ramp-up of exports from 2H17 onwards to the ASEAN market. Its 60.4%-owned BAP will be listed in the Philippines by end-May 17 instead of 7 Apr 17. Although we opine that share price has limited upside given the stretched valuation, the stock still offers decent yields. Maintain HOLD and target price of RM2.05, implying a 12.2x 2018 P/E. Entry price: RM1.90.

Source: UOB Kay Hian Research - 18 Apr 2017