April’s vehicle sales released by the Malaysian Automotive Association
(MAA) saw a 6% y-o-y drop in total industry volume (TIV) to 47,736 units as
stricter hire purchase guidelines continue to drag down sales. YTD TIV of
186,280 declined 11% y-o-y, making up only 30% of MAA’s 2012 estimate of
615,000 units. We believe sales led by the passenger segment would gradually
improve driven by introduction of new models. Maintain Neutral on the sector.
§
Tan
Chong Motors (Results Review): 1QFY12:
Sluggish sales dragged down profit (Maintain HOLD, TP: RM4.16) [download
report]
Tan Chong Motors 1QFY12 net profit of RM31.7m came in below our and
market expectations as supply constraint from the Thai floods and tighter
lending policies bogged down sales, while higher selling costs led to lower
operating margins. In line with the latest sales figures, we have revised our
vehicle sales projection resulting in a cut of FY12-14F net profit by 16-14%.
As such, our target price is also lowered to RM4.16 from RM4.72 previously.
Maintain Hold.
§
Economics
(Leading Economic Indicator): March
2012: Leading indicator grows albeit slower. [download
report]
March leading indicator grew at an encouraging pace
albeit slower, amid weak external trade and industrial production figures. It
increased by 2.1% versus 2.9% y-o-y in February. The coincident indicator also
grew to suggest that the economy expanded in 1Q2012. We estimate the GDP may
have grown by at least 3.5% y-o-y in the quarter.
Other reports
Other Malaysian news
§
MMC-Gamuda:
JV denies
will claim RM1.5bn
§
Boustead: To privatise UAC for RM 4.30 per share
§
Mah Sing: Buys 172ha in Bandar Baru Bangi
§
Mega
First: Gets nod for Laos
§
Masterskill: Could pay out some IPO proceeds
§
XingQuan: Locks in sales orders worth RM400m
§ Salcon: Acquires stake in Chinese water plants
§
Brahim’s: To buy remaining 49% stake in Brahims-LSG sky Chefs
§
Heitech Padu: Wins RM34.5m IRB contract
§
TAS
Offshore: Secures RM98m contract
§ Construction: MTD awarded RM500m MRT viaduct project
Global news
§ US
§ Europe: Euro-area construction output rebounded in March on Germany
§ China : Euro-area construction output rebounded in March on Germany
§ Taiwan
§ Thailand
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