-  DRB-HICOM Bhd will present the roadmap for Proton Holdings Bhd to the government soon, possibly by the end of the month.

-  Business Times reported DRB-HICOM group managing director Tan Sri Mohd Khamil Jamil as saying that the outline of the roadmap, which is to rejuvenate the national carmaker, had been presented to the Minister of International Trade and Industry.

-  He said the minister wants the roadmap in a more detailed manner and it could be ready within two weeks.

-  Jamil also said the group has no intention of selling Proton’s plant in Shah Alam amid speculation that it would shift all its operations to its factory in Tanjung Malim, Perak. The group has said that all new models would now be made in Tanjung Malim.

-  Proton needs a strong pipeline of competitive models to face the challenges and stiff competition in the auto industry.

-  DRB-Hicom was to have unveiled its turnaround plan for Proton in March, which includes a roadmap for new car models and collaborations with foreign partners. Business Times reported that it has been postponed twice.

-  The paper reported that until recently, Proton had seen its share in the passenger car market easing since the launch of the Preve in April last year.

-  Its share of the domestic passenger car market stood at 25.6% in 2012. This was from the sales of 141,120 Proton cars, compared with 189,137 units of Perodua.

-  From January to June this year, Proton sold an average of 8,000 units/month. Nevertheless, sales have doubled to over 16,000 units in July, thanks to the launch of the competitively-priced Saga SV.

-  We maintain BUY on DRB-Hicom, with a fair value of RM3.65/share – a 15% discount to our SOP value of RM4.31/share.

Source: AmeSecurities