MBM Resources

MBM Resources

Postby winston » Wed Nov 07, 2018 2:24 pm

not vested

RHB upgrades MBM Resources, says stock 'too cheap to ignore'

by Amir Ridzwan Ismail

KUALA LUMPUR (Nov 7): RHB Research Institute Sdn Bhd said today it has upgraded MBM Resources Bhd shares to "buy" from "trading buy" after MBM's share price corrected 20% in the past six months.

MBM, which manufactures automotive parts, also owns a 20% stake in Perusahaan Otomobil Kedua Sdn Bhd (Perodua), according MBM and Perodua's websites.

RHB wrote in a note it had raised its MBM share target price to RM2.70 from RM2.56. At Bursa Malaysia today, MBM shares were traded unchanged at RM2 at 10:49am.

"We raise our TP to RM2.70 from RM2.56 after rolling forward our base year to 2019, with a target P/E of 9x, close to its 5-year mean.

At current levels, the stock is inexpensive when compared to peers, but lacks near-term re-rating catalysts. Nonetheless, at a prospective FY19 P/E of just >6x, the stock is too cheap to ignore.

"We revise our FY18F-20F earnings (by) 6-14% to reflect an increase in estimated Perodua sales volumes after strong traction on the Myvi and change in JPY/MYR FX assumptions to follow the house view.

Key risks to our call: weaker consumer sentiment and unfavourable FX trends," RHB said.

Source: The Edge

http://www.theedgemarkets.com/article/r ... eap-ignore
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Re: MBM Resources

Postby winston » Fri Oct 30, 2020 9:00 am

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Stocks wise, we see a good bargain hunting opportunity on MBMR (RM2.63, BUY- TP RM5.00) after recent selloff (-31.9% YTD).

Trading only at 4.9x FY21E P/E (48% below 10Y mean 9.5x) with a strong net cash of RM42.7sen and 7.6% FY21E DY, MBMR is in a good position to leverage on the implementation of SST as we expect pent-up deliveries by year end.

Major earnings contributor, Perodua is increasing production rate to 25k units per month (from usual 20k units) for the period of Aug to Dec months to cater for the strong demand.

MBMR is steeply oversold and we see good entry levels near RM2.45-2.60 zones.

A decisive breakout above RM2.81 (10D SMA) is likely to spur share prices higher towards RM3.00 (30D SMA) and RM3.20 (38.2% FR) territory.

Key supports are pegged at 2.50-2.45. Cut loss at RM2.40.

Source: HLIB
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