Reiterate BUY; raise TP to MYR11.45. Following impressive 1H12 sales figures for Toyota and Perodua despite a slow cyclical start, we raise UMW's combined sales TIV from 281k to 288k (+2.6%) for 2012. Furthermore, we view UMW's move to focus on its upstream O&G business positively, with the potential doubling of its jack-up rig fleet to four from two presently. We raise our earnings forecasts by 7-11% for 2012-13. We also lift our TP to MYR11.45 (+20%) as we re-rate UMW to 13x 2013 PER (from 12x) on a more upbeat outlook for all divisions.

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Source: Maybank Research - 26 July 2012