The first phase of e-invoicing has started. We believe that e-invoicing will benefit the economy by accelerating accounting processes, reducing fraudulent claims, and enhancing taxpayer compliance. It will also facilitate a smoother transition to the GST system in the future, if necessary, though we doubt that GST 2.0 will be implemented in the near term. Expect minimal impact on automotive companies that have strong own in-house vehicle financing arm, especially those offering convenient payment options with low monthly installments. We currently have a Sell recommendation for MBMR (TP: RM4.70), a Buy for BAuto (TP: RM2.74) and a Hold for SIME (TP: RM2.85).
The e-invoicing will lead to a rise in tax revenues, thus this year’s target of RM243.6bn and lower fiscal deficit are achievable (TA forecast: -4.2% of GDP). However, the tax revenue-to-GDP ratio is still low by historical standard (2024E: 12.3% of GDP) and regional peers. We suggest that the government to set an annual tax revenue target of around 15% to 20% of GDP. Achieving this level of tax revenue would provide the fiscal space needed to support economic development.
Source: TA Research - 22 Aug 2024
Chart | Stock Name | Last | Change | Volume |
---|
2024-08-22
BAUTO2024-08-22
BAUTO2024-08-22
BAUTO2024-08-22
MBMR2024-08-22
MBMR2024-08-22
SIME2024-08-22
SIME2024-08-22
SIME2024-08-22
SIME2024-08-22
SIME2024-08-22
SIME2024-08-22
SIME2024-08-21
BAUTO2024-08-21
MBMR2024-08-20
BAUTO2024-08-20
SIME2024-08-20
SIME2024-08-20
SIME2024-08-19
SIME2024-08-19
SIME2024-08-19
SIME2024-08-19
SIME2024-08-19
SIME2024-08-19
SIME2024-08-19
SIME2024-08-19
SIME2024-08-19
SIME2024-08-16
BAUTO2024-08-16
BAUTO2024-08-16
SIME2024-08-16
SIME2024-08-16
SIME2024-08-16
SIME2024-08-15
BAUTO2024-08-15
SIME2024-08-15
SIME2024-08-14
BAUTO2024-08-14
SIME2024-08-13
BAUTO2024-08-13
MBMR2024-08-13
SIME2024-08-13
SIME2024-08-13
SIME2024-08-13
SIME2024-08-13
SIME2024-08-12
BAUTO2024-08-12
SIMECreated by sectoranalyst | Aug 22, 2024
Created by sectoranalyst | Aug 22, 2024
Created by sectoranalyst | Aug 22, 2024
Created by sectoranalyst | Aug 22, 2024
Created by sectoranalyst | Aug 22, 2024