Upgrade to Overweight. April's MoM contraction in TIV was expected, owing to inventory constraints and a high base in March, as major marques roll out deliveries from earlier pent-up demand. Overall, we are turning upbeat on the auto sector. We reckon most of the operating setbacks have been priced in. We now elevate the automotive sector to an Overweight following our recent upgrades of UMW and TCM to BUY. MBM remains a HOLD.
Click here for full reportSource: Maybank Research - 23 May 2012