MOU are just MOU until they are executed n carried out, otherwise it will be void after the agreed time frame of implementation. Too often, MOUs are signed n after this nothing had been done, don't know why. Maybe it could be a way to push up share prices of the companies concerned n later sold the shares to unsuspecting investors who chased high.
Electrification poised to give sector a push BUSINESS Friday, 12 Nov 2021
PETALING JAYA: Momentum in electrification is seen to be building up for the automotive sector, with the collaboration between EP Manufacturing Bhd (EPMB) and the Malaysia Automotive Robotics and IoT Institute (MARii) for electric vehicle (EV) localisation.
The tie-up, following the signing of a memorandum of understanding on Wednesday, came hot on the heels of Budget 2022’s EV incentive announcement.
According to MIDF Research, electrification is a long-term term trend for the automotive industry.
The brokerage maintained its “positive” stance on automotive, noting the immediate-term recovery of the sector would be boosted by the extension of the sales tax holiday till June 2022; a low-interest rate environment; and generous cash releases to consumers under the various stimulus programmes.
On electrification, MIDF said the potential immediate-term opportunity in the EV segment is brand and model expansion, especially key EV brands and models that are underrepresented in Malaysia.
The brokerage noted in its report the potential of EPMB tapping on brands from China.
“It is still uncertain as to whom the prospective principals will be for the project as no further details were provided. However, we note that EPMB had in late-October, set up a satellite office in China to source and identify opportunities for collaboration with EV players in China,” MIDF said.
“The group had also appointed two new directors to its board, namely, Derek Cheng (senior adviser to Blackstone Group (HK) Ltd) and Mac Ho (managing director of Asean for HKFAEx Group Ltd),” it added.
MIDF said many China EV brands had yet to establish their presence in Malaysia, thereby creating opportunities for new or existing local players to expand their brand portfolio to capitalise on Budget 2022’s EV incentives.
“We see the expansion of brands and EV model offerings as the sector’s immediate-term focus in reaction to the government’s Budget 2022 EV incentives, in order to kickstart EV development in the country,” it said.
Beyond the EPMB-MARii deal, MIDF said several local players that have strong EV pipeline backing from existing principals, were also likely to benefit from the government’s EV incentives.
These would include Bermaz Auto Bhd (BAuto), which distributes the Mazda, Kia and Peugeot brands; Tan Chong Motor Holdings Bhd, which distributes the Nissan and Renault brands; Sime Darby Bhd, with multiple brands including BMW, Mini, Porsche, Jaguar, Land Rover and Hyundai; MBM Resources Bhd, with the Volvo and VW brands; and UMW Holdings Bhd, with Toyota and Lexus.
MIDF’s top sector picks were BAuto, with a target price of RM2.35; MBM Resources, with a target price of RM4.30; and UMW, with a target price of RM4.35.
“BAuto is a play into brand expansion from the acquisition of Kia and Peugeot franchise, leading to structural expansion in market share and above-industry growth,” it explained.
“MBM Resources and UMW are both key proxies to the sector recovery, given exposure to Perodua (and Toyota for UMW) – effectively controlling the largest share of the industry,” it added. Join our Telegram channel to get our Evening Alerts and breaking news highlights TAGS / KEYWORDS: Electric Vehicle , EPMB , MARii
This is the interesting/exciting part of EPMB's move.
"The MIDF noted in its report the potential of EPMB tapping on EV brands from China.
“It is still uncertain as to whom the prospective principals will be for the project as no further details were provided. However, we note that EPMB had in late-October, set up a satellite office in China to source and identify opportunities for collaboration with EV players in China,” MIDF said.
“The group had also appointed two new directors to its board, namely, Derek Cheng (senior adviser to Blackstone Group (HK) Ltd) and Mac Ho (managing director of Asean for HKFAEx Group Ltd),” it added. "
How many MOUs signed but how many actually materialise or executed. Many had become null n void. Are these MOUs signed to push up the share prices n later dump. One good example is widad, muhyidden even attended the signing till today nothing come out of it.
I have seen many bursa listed companies signed MOUs n shares began to spike on news but after this, nothing happened n share prices collapsed or went back to before. Are these tactics to pump n dump the shares to swindle unsuspecting retailers, or what?
apparently no counters will be gaining atm due to the policies and economy. This share price increase maybe due to their announce of projects?? For me i never seen people goreng counter RM1 then ciao, so lame. People goreng more than rm1 only ciao one.
This share price spike up because of news of MOUs signing n not because of any change in fundamentals. MOUs will just remain just that if the parties involved did not do any follow up within a certain time frame n in this case, is 2 year n after the time frame over, it will lapse n become void.
Bear in mind that MOUs are not necessarily cast in stone unlike other contract n agreement signing. In MOUs either party can just called it of without any legal repercussion.
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....
teareader818
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Posted by teareader818 > 2021-11-12 23:49 | Report Abuse
Borrowing Tesla's Gigapress?
LOOK009 This share got contract with Tesla or not?