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24 March 2023. Friday
KUALA LUMPUR (March 24): MIDF Amanah Investment Bank Bhd has revised its 2023 forecast of the total industry volume (TIV) for the automotive sector upwards by 5% to 713,000 units, premised on the industry’s order backlog.
It noted that on a year-to-date basis, the TIV is up by 30% year-on-year at 112,128 units, making up 17% of MIDF’s previous 2023 TIV forecast of 678,000 units.
“Given the strength of the industry’s order backlog and in line with our company-specific upward revisions in the recently concluded fourth quarter of calendar year 2022 results season, we raised our 2023 TIV [forecast] by 5% to 713,000 units.
“As such, we also raised our sector earnings forecast for financial year 2023 (FY2023) by an average of 14%,” MIDF said in a research note on Friday (March 24).
It raised its FY2023 earnings forecasts for Bermaz Auto Bhd (BAuto) by 27%, UMW Holdings Bhd by 13% and MBM Resources Bhd by 9%, while keeping its projections for Tan Chong Motor Holdings Bhd unchanged.
In tandem with the forecasts, the research house also raised its target prices for BAuto by 20%, UMW by 6% and MBM by 2%.
