MBM Resources Berhad - Resilience Amid Sector Downturn
Mon, 12-Aug-2024 08:08 pm
by Steven Chong • Apex Research

Counter

MBMR (5983)

Target Price (RM)

4.35

Recommendation

Hold

  • MBMR involved in distributorship and dealership of international brands of vehicles as well as manufacturing of vehicles and automotive parts in Malaysia.
  • We project core earnings to taper -20.0% yoy in FY24F and recover mildly +3.8% yoy in FY25F in tandem with the anticipated industry wide slowdown.
  • MBMR is valued by pegging its FY24F core EPS of 66 sen to PE of 6.6x, leading to a FV of RM4.35 (-1.6% potential downside from current price).
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Opinions, estimates and projections in this report constitute the current judgment of the author. They do not necessarily reflect the opinion of Apex Securities Berhad and are subject to change without notice. Apex Securities Berhad has no obligation to update, modify or amend this report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.

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