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If you did notice my facebook page, i had been stressing out on the emergence of Perodua Bezza in the Automobile Industry. For me Perodua Bezza comes out in the right time, right price, with the right specification. Right time, is because Bezza emerges when the consumer power is recovering. And now is the exact time to boost up the automobile industry. Right price, is because Bezza is priced from RM37k to RM51k, depending on the specifications selected. Right specification, means this first ever Perodua sedan car obtained a 5 stars ASEAN NCAP (New Car Assessment Programme) for safety. With its fuel efficiency of 22.8 km/l, it can be compared to foreign competitor, Mitsubishi Attrage/Mirage[2][3].

Why i am so fond about this car? First is because it is our Malaysia Perodua's first ever EEV (Energy Efficient Vehicles) sedan car. Imagine it is local made and assembled car. Bezza is made with quality, comfort, spaciousness, reliability, affordability and looks in mind as it has one of the biggest boot spaces in the market with 508 litres available in its class. We, as Malaysians should be proud of Perodua's technology.

Perodua targeted to sell 7,600 units of Bezza per month in 2016[4]. In terms of Mathematic, from August to December 2016, they targeted 38,000 units of Bezza to be sold. Even Mr President and CEO, Datuk Dr Aminar Rashid Salleh was expecting Perodua Bezza to be one of the best volume sellers, targeted for replacement car buyers, specifically newly-weds and young families, who need a larger boot space in line with the new stage in their lives. We imagine, Malaysia had a lot of fresh graduates every year. In the first year of working, most of them will require a car. It used to be Myvi which was their favourite cars. But Myvi is a hatchback car. If we can get a sedan car with almost the same price with Myvi, i believe mostly fresh graduates will also opt for a sedan car as it is more spacious.

Just within 10 days (16 July to 26 July 2016), Perodua Bezza hits 10,115 bookings, averaging 1,000 units per day. And they had ready stocks of 9,000 units by end of July[5]. And in the early month of August, i already saw a few Bezza cars on the road. And i managed to snap this. See the plate number, it is still new, starting with WD, ending with C. I also saw a display Bezza in the AEON Big. I tried the car and it was comfy. Hmm, we still cant compare with Vios or City, but trust me, we will get there, on par with them

As for UMW, UMW holds 38% of Perodua shares[18]. But UMW is the hardest and the slowest to react. Currently, UMW had broken the downtrend channel, also pending quarter result this month. I think maybe the price of UMW is too expensive and also UMW's earnings will be offset by lower Toyota sales and losses at its Oil and Gas business[12]. Therefore people lose the interest in UMW and mostly will go for MBMR, as the price is cheaper. Or also MBMR-WA. MBMR-WA's expiry date is 14 June 2017, still another 10 months to go. But MBMR-WA is currently out of money, as the conversion price is 3.2.

For Perodua Bezza, the potential benefit companies are listed above, MBMR, PECCA and also UMW. But recently, Proton Persona will also be unveiled on 23 August 2016 and now it is available for booking[19]. Not much confirmed information on the new Persona. Proton is owned by DRB-HICOM. Let's look at DRBHCOM's daily chart.

Currently DRBHCOM had been active for the past few weeks. The chart had broken the downtrend channel. DRBHCOM had incur losses for 2016. Partly might be because of the Proton sales. After downtrend for a long time, now it seems that the price had rebounded. Not much information on Proton Persona yet, but i am sure that we will have all the information soon. And will Proton Persona brought DRBHCOM price up after dragging their profit in 2016? Let's wait and see. Currently the chart is oversold, with RSI oversold and the candles are at the upper band. The volume had been active recently, fundamentally wise, it is not so steady. I am just afraid that market makers are behind the spikes or their coming QR will be improved. However, stay cautious on DRBHCOM.

Since more local cars will be surfaced out in the second half of the year, i am sure a lot of companies might benefit from it. But we also need to look at the consumers' behaviour whether are they willing to spend more money and also banks whether they are willing to provide loans. However, i felt that there is one company that had been neglected. If our local manufacturer automotive industry had been resurrected, i am quite firm that this company will benefit. I had highlighted the chart in my Facebook Page recently on 11 August 2016.

OCNCASH is engaged in 2 business, one is the OCNCASH Felts and the other one is OCNCASH Non-Woven. Coincidently, i am browsing through Perodua's website and i saw this picture.

In order to confirm whether OCNCASH is supplying felts to our local made cars, i had emailed to the management and they had confirmed that they are supplying the felts to our local manufacturers and there are other competitors as well. If Perodua Bezza and Proton Persona hit big sales in Malaysia, OCNCASH is another company that we can look into. Not only MBMR, PECCA, DRB-HCOM, OCNCASH should be under the spotlight as OCNCASH benefits from both local cars and moreover the current share price can be considered the cheapest and it had not spiked up like PECCA and MBMR. If you want to know about the fundamentals of OCNCASH, previously i had wrote about OCNCASH in my previous posts, you can click here (1) (2).

OCNCASH had been in downtrend after hitting the highest point of 0.5 at 13 January. OCNCASH also being affected by the weak Q1 result. As OCNCASH will be announcing their Q2 result in this month, the volume starts picking up and the chart is in uptrend mode. As per highlighted in my Facebook page, there is an golden triangle being formed and the chart is in a bullish uptrend pattern. The next immediate resistances of 0.39 and 0.42. If OCNCASH is able to break the resistances in this month before the quarter result is announced, then it had more power to challenge the further resistances.

It is amazing that simple things in our life that can spark the ignition of the stock prices. As simple as a car, it already rallied a few stocks. These are all a part of our life, it is only up to us whether we want to ride the wind or we just let the wind be blown away. If you have any queries, you are always welcomed to whatsapp me at 016-2467867 or you can FB messenger me at my FB page, Gainvestor. Let me try to fill out the blanks in the question pools. Opportunities are here, take action and grab it NOW!!

Sources:

[1]: http://paultan.org/2016/01/19/foreign-brands-again-outsell-proton-perodua-in-2015/2015-mkt-share-perodua/

[2]: http://paultan.org/2016/07/21/perodua-bezza-officially-launched/

[3]: http://www.perodua.com.my/ourcars/bezza

[4]: The Edge Financial Daily dated 18 July

[5]: http://paultan.org/2016/07/26/perodua-bezza-hits-10115-bookings-averaging-1000-per-day/

[6]: http://paultan.org/2016/07/27/malaysia-vehicle-sales-data-for-june-2016-by-brand/

[7]: http://paultan.org/2015/07/28/malaysia-vehicle-sales-data-for-june-2015-by-brand/

[8]: http://www.motortrader.com.my/news/weak-start-to-new-vehicle-sales-for-second-quarter/

[9]: http://www.themalaymailonline.com/money/article/perodua-sees-better-sales-in-second-half-of-2016

[10]: http://paultan.org/2016/01/21/2015-malaysia-vehicle-sales-market-review-by-brand/

[11]: http://paultan.org/2016/08/16/spad-unveils-plan-to-resolve-long-standing-issues/

[12]: The Edge Financial Daily dated 25 July 2016

[13]: http://paultan.org/2014/09/16/perodua-axia-orders-13500-units/

[14]: https://en.wikipedia.org/wiki/Perodua_Axia

[15]: MBMR Q4 2014 & Q3 2014

[16]: http://paultan.org/2014/12/18/perodua-anticipating-total-sales-195000-units-2014-axia-gets-62000-bookings-26000-delivered/

[17]:http://www.sinchew.com.my/node/1557776/bezza%E7%83%AD%E9%94%80%E5%B8%A6%E5%8A%A8%EF%BC%8Epecca%E4%B8%9A%E7%BB%A9%E6%96%99%E8%B5%B0%E4%BF%8F

[18] UMW Annual Report 2015

[19]: http://www.thestar.com.my/business/business-news/2016/08/16/proton-persona-now-open-for-booking/