UMW Holdings; Hold; RM7.26
Price Target: RM7.30; UMWH MK

According to a local media, UMW Toyota Motor is maintaining its sales target of 93k units (with 6k units of hybrid cars) of Toyota and Lexus cars this year, aiming to capture about 15% of Malaysian Automotive Association's (MAA) 2012 TIV target of 615k units this year. The comments were made during the launching of its new Lexus model ' Lexus GS ' which is expected to sell around 150 units this year. The Lexus GS is available in 5 variants with price tags ranging from RM366,200 to RM464,800.

UMW's sales target for Toyota is within our FY12F expectation of 93.7k unit sales, which are projected to contribute RM10.3bn (or 78.0%) to UMW's FY12F revenue of RM13.2bn. Toyota and Lexus have cummulatively sold 87,895 units in 2011, which was a drop of 4.4% y-o-y due to auto parts supply disruption from the natural disasters in Japan and Thailand.

Maintain Hold and RM7.30 TP (based on sum-of-parts valuations).

Source: HwangDBS Research - 29 March 2012