not so difficult to understand la. Mahahir said proton is not longer a national car. So he very sad and setup 3rd national car. Proton is China, Perodua is Japan. So you need mahathir prefer who involved for 3rd national car?
I think some investors just decided to take some profit off the table now.
Even at the current share price, MBMR is still the cheapest auto company in Bursa. Excluding all the non recurring items, the company should be able to deliver a profit to shareholder of between RM200mil to RM240mil per year which translate to a PE of only 6.5x to 8x PE. This is a lot lower compared to the industry average of around 14x to 15x PE.
Other appeal of the company include:
1) Domestic focus. will not be too affected by the current trade war between US and China.
2) Affordable market segment. Especially in an economic downturn, most people would prefer to move to a more affordable option rather than buying higher price foreign made brands ( this also apply to Proton who gain market share at the expense of Honda).
3) Strong balance sheet and cash flow. The company has been able to reduce its debt from a high of RM550mil in FY12 to now only RM150mil. Every year the company generates RM100-150mil in cash from operations and investments.
4) New dividend policy which would ensure steady dividend payment to shareholders. This is especially appealing for yield investors given the current low yield environment. Expect US Fed to lower its benchmark yield again in September. Other central banks including BNM will likely follow suit.
5) Main beneficiaries of any decrease of OPR by BNM ( actually for all auto industries).
6) No more losses from OMIA translating to a potential bump in profit by RM20mil. Will start to see the affect in 3Q19.
7) Contrary to some comments earlier, MBMR actually benefits from the increasing sales of Proton as the company is currently the main auto manufacturer for Proton. If you look at 2019 sales numbers from MAA, Proton increase in sales actually does not affect Perodua as the company under Geely is actually wanting to focus on mid premium price range. The X70 for example is price between RM100k to RM123k vs Perodua Aruz of only RM73k to RM78k. The one that is affected by Proton emergence is actually the foreign brands in particular Honda. Sales drop this year but i suspect its mainly due to lower sales of their CRV due to market preference for the cheaper x70.
Best Regards. And congrats to those that invested earlier especially those that stayed when it fell to below RM2 back in Nov 18.
The eps is very great.but the market condition is not so good.but i think, a clever money will play this counter to very high TP in order for them to disposed.
27-Aug-2019 Insider EMPLOYEES PROVIDENT FUND BOARD (a substantial shareholder) disposed 131,000 shares on 22-Aug-2019. 26-Aug-2019 Insider EMPLOYEES PROVIDENT FUND BOARD (a substantial shareholder) disposed 324,200 shares on 21-Aug-2019.
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MQ Trader 3111 views | 3 d ago
0:17
New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
bojed
5,064 posts
Posted by bojed > 2019-08-27 08:49 | Report Abuse
pang72: We win together like we did in Greatech, Homerich, Dsonic, HTPadu, DRB and now MBMR hahahaha!