Maintain Hold. MBM's long-term strategic plan looks promising. We however maintain our earnings forecasts and believe that most of the positives have been priced in, with the share price up 41.5% year-to-date and the stock trading at 7x current year PER. Further, we expect a weak 1Q outlook. Its potential venture into vehicle assembly is a re-rating catalyst, but nothing has been formalised. Until then, MBM is a Hold with an unchanged TP of RM4.60 (7x 2013 PER).


Maybank Research 9 March 2012

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