KUALA LUMPUR (March 12): CGS-CIMB remained positive on DRB-Hicom Bhd’s outlook as the transformation of its 50.1%-owned subsidiary Proton Holdings Bhd is gaining momentum. CGS-CIMB’s analyst Mohd Shanaz Noor Azam said in a note today, after joining DRB-Hicom’s post-results conference call, he is excited to learn that Proton is focusing on active product lifecycle management as it plans to introduce six to seven models based on new technology integration and joint-development programmes over next seven years as part of its mid-term strategy. The group is in the midst of ramping up its production of X50 and X70 in Tanjung Malim to meet the strong demand. Management indicated that these models each have an order backlog hovering three to four months,” he said. While the group did not provide sales guidance for the marque, it expected Proton to outperform the Malaysian Automotive Association’s target of 8% sales volume growth in 2021, he added. Mohd Shanaz said Proton is also aiming to grow its export market — which accounted for around 2% of its sales volume last year — with plans to double its export volume in 2021 following the launch of X70 in Brunei and Pakistan, and the commencement of its manufacturing operations in Kenya last year. Meanwhile, Proton is still studying and exploring partnership opportunities to penetrate the Thai and Indonesian markets; we think this could be a major driver for its export growth,” he said. Mohd Shanaz noted that meanwhile, Proton continues to solidify its position in the region, ending 2020 with a 5.9% market share, ranking it among the six largest automotive brands in the combined market of Malaysia, Indonesia and Thailand (vs. 2.3% in 2018, 3.8% in 2019). Under its transformation strategy, Proton aims to be the third-largest player in Southeast Asia by 2027,” he added.
Upsides: Visible movements by Proton to expand its export market. Helps break free from the limited Malaysia market. The X50 and X70 getting good attention overseas. Honda Malaysia still steady, the City is doing well and new HRV will attract interest.
Downsides: Chip shortage affecting whole industry, poor reputation for after-sale service and parts availability. In my view the chip shortage hits everybody so is not going to precipitate loss of customers, so this is less of an issue.
I can say that drb still have many not performing companies eg(pos malaysia) But the good news is in this q suzuki, mitsubishi sales break hotorical record over the past 5 years.
POS qr was out, and it had improving the result. I think it's time another little boost for drbhicom, due to POS are dragging the result as overall contribution in qr of drbhicom.
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jessymna
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Posted by jessymna > 2021-03-09 10:45 | Report Abuse
This will be a big winner as proton sales keep growing