POSITIVE [Unchanged]
Total Page:16
File Type:pdf, Size:1020Kb
February 8, 2021 Malaysia Automotive POSITIVE [Unchanged] Porsche picks MY? Analyst Excellent, if it crystalizes Porsche AG is in an advanced talk to setting up an assembly plant in Liaw Thong Jung Malaysia for its ASEAN market, identifying Inokom as its partner. Sime (603) 2297 8688 and BAuto are the key beneficiaries through their equity stake in Inokom. [email protected] We have BUYs on these two stocks. Identifies Inokom as its partner According to media sources, German luxury sports car maker Porsche AG is said to be setting up an assembly plant in Kulim, Kedah, in what would be its first outside Germany. Porsche will partner Inokom for this Automotive venture, making Malaysia its ASEAN hub. The latter will construct a new plant specifically for Porsche in Kulim. That said, the size (capacity) and value of this investment cannot be ascertained at the moment. Targets to CKD 2 SUV models We are positive but not entirely surprised by this development, for we have highlighted this possibility in the past. Inokom is involved in the assembly of passenger cars, multi utility vehicles, sports utility vehicles, Malaysia multi-purpose vehicles and light commercial vehicles for Hyundai, BMW, Mazda and MINI cars there. We understand that this will be Porsche’s assembly plant for the ASEAN market with the prospect of CKD-ing 2 models, namely the SUV Cayenne and Macan. Sime Darby and BAuto to benefit Inokom is owned by a consortium of shareholders, namely Sime Darby Motors S/B (51%), BAuto (29%), Hyundai Motor Company of South Korea (15%) and Sime Darby Hyundai S/B (5%). We conservatively estimate that Inokom generates about MYR50m p.a. for every 1,000 CKD units (assembly margin: MYR50k/ unit). That equates to an annual pretax profit of MYR14.5m to BAuto and MYR28m to Sime, based on their respective equity stakes, representing roughly 10% and 3% of their respective group profits in FY22. Stock Bloomberg Mkt cap Rating Price TP Upside P/E (x) P/B (x) Div yld (%) code (USD'm) (LC) (LC) (%) 20E 21E 20E 21E 20E 21E Sime Darby SIME MK 3,693 Buy 2.21 2.70 22 14.2 15.2 1.0 1.0 4.7 4.6 UMW UMWH MK 827 Buy 2.88 3.95 37 17.5 12.8 0.9 0.8 0.9 1.2 Bermaz Auto BAUTO MK 380 Buy 1.33 2.10 58 15.1 17.3 3.4 3.3 5.5 3.5 MBM Resources MBM MK 309 Buy 3.22 4.00 24 7.8 6.5 0.7 0.6 3.9 4.6 Tan Chong Motor TCM MK 185 Sell 1.12 1.00 (11) nm 51.6 0.3 0.3 1.8 1.8 THIS REPORT HAS BEEN PREPARED BY MAYBANK INVESTMENT BANK BERHAD PP16832/01/2013 (031128) SEE PAGE 4 FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS Malaysia Automotive Snapshot of assembly plants in Malaysia (by marque and location) Assembly plant Location Make Model Perodua Manufacturing S/B Rawang, Selangor Perodua MyVi, Alza, Aruz, Rush (Toyota), Axia, Bezza Proton Shah Alam, Selangor Proton Saga, Exora Volvo Car Manufacturing MY (VCMM) Shah Alam, Selangor Volvo CX40, S60, XC60, S90, CX90 Assembly Services S/B (ASSB) Shah Alam, Selangor Toyota Hilux, Innova, Fortuner, Hiace Bukit Raja, Selangor Toyota Vios, Yaris Tan Chong Motor Assemblies Serendah, Selangor Nissan Almera, X-Trail, Serena, NV200 Segambut, Selangor Mitsubishi ASX, Outlander Subaru XV Renault Captur Foton UD truck Deauto Industries S/B (DISB) Klang, Selangor CAMC R&A Commercial Vehicles Klang, Selangor CAM Placer, Kingo,Co-Star King Long Sinotruck Scania Klang, Selangor Scania Honda Malaysia Pegoh, Melaka Honda City, Jazz, Civic, Accord, BR-V, HR-V, CR-V Berjaya Assembly S/B Tampoi, Johor Westar Foton Chana TN Engineering Johor Bahru, Johor Sinotruck HS Assembly Perai, Penang ZNA Hohan Hanvan JBC Proton Tanjung Malim, Perak Proton X50, X70, Persona, Iriz Inokom Corporation Kulim, Kedah BMW, Mini 3-series, 5-series, 6-series GT, 7-series, X1, X3, X4 Hyundai Ioniq, Santa Fe, Starex Mazda CX5, CX8 Naza Automotive Manufacturing Gurun, Kedah Peugeot 3008, 5008 Kia Citroen Go Automobile Manufacturing Gurun, Kedah Haval H1, H2 Hicom Automotive Manufacturers MY (HAMM) Pekan, Pahang Volkswagen Tiguan, Allspace, passat, Arteon Mitsubishi Expander Mercedes Benz E-class, S-class, GLC-class Isuzu Hicom Malaysia (IHM) Pekan, Pahang Isuzu D-Max Hino Motors Manufacturing (MY) Sendayan, NS Hino N.B. heavy Industries Sibu, Sarawak Bei Ben JAC Source: Various, MAA, Maybank KE February 8, 2021 2 Malaysia Automotive Research Offices ECONOMICS REGIONAL EQUITIES SINGAPORE THAILAND Suhaimi ILIAS Anand PATHMAKANTHAN Thilan WICKRAMASINGHE Head of Research Maria LAPIZ Head of Institutional Research Chief Economist Head of Regional Equity Research (65) 6231 5840 [email protected] Dir (66) 2257 0250 | (66) 2658 6300 ext 1399 Malaysia | Philippines | Global (603) 2297 8783 • Banking & Finance - Regional [email protected] (603) 2297 8682 [email protected] • Consumer • Strategy • Consumer • Materials • Services [email protected] WONG Chew Hann, CA CHUA Su Tye Jesada TECHAHUSDIN, CFA CHUA Hak Bin Head of ASEAN Equity Research (65) 6231 5842 [email protected] (66) 2658 6300 ext 1395 Regional Thematic Macroeconomist (603) 2297 8686 • REITs - Regional [email protected] (65) 6231 5830 [email protected] • Banking & Finance [email protected] LAI Gene Lih, CFA ONG Seng Yeow (65) 6231 5832 [email protected] Kaushal LADHA, CFA LEE Ju Ye Research, Technology & Innovation • Technology • Healthcare (66) 2658 6300 ext 1392 Singapore | Thailand | Indonesia (65) 6231 5839 [email protected] (65) 6231 5844 [email protected] Kareen CHAN • Oil & Gas – Regional [email protected] (65) 6231 5926 [email protected] • Petrochemicals - Regional MALAYSIA • Transport • Telcos • Utilities Linda LIU Singapore | Vietnam | Anand PATHMAKANTHAN Head of Research TAN Chin Poh Head of Retail Research Vanida GEISLER, CPA Cambodia | Myanmar | Laos (603) 2297 8783 (65) 6231 5928 [email protected] (66) 2658 6300 ext 1394 (65) 6231 5847 [email protected] [email protected] [email protected] • Strategy Eric ONG • Property (65) 6231 5924 [email protected] Dr Zamros DZULKAFLI Desmond CH’NG, BFP, FCA • Retail Research Yuwanee PROMMAPORN (603) 2082 6818 (603) 2297 8680 (66) 2658 6300 ext 1393 [email protected] [email protected] Matthew SHIM Yuwanee.P @maybank-ke.co.th • Banking & Finance (65) 6231 5929 • Services • Healthcare Ramesh LANKANATHAN [email protected] (603) 2297 8685 LIAW Thong Jung • Retail Research Ekachai TARAPORNTIP Head of Retail Research [email protected] (603) 2297 8688 [email protected] (66) 2658 5000 ext 1530 • Oil & Gas Services- Regional INDIA [email protected] William POH • Automotive (603) 2297 8683 Jigar SHAH Head of Research Surachai PRAMUALCHAROENKIT [email protected] ONG Chee Ting, CA (91) 22 4223 2632 [email protected] (66) 2658 5000 ext 1470 (603) 2297 8678 [email protected] • Strategy • Oil & Gas • Automobile • Cement [email protected] FX • Plantations - Regional • Auto • Conmat • Contractor • Steel Neerav DALAL Saktiandi SUPAAT YIN Shao Yang, CPA (91) 22 4223 2606 [email protected] Suttatip PEERASUB Head of FX Research (603) 2297 8916 [email protected] • Software Technology • Telcos (66) 2658 5000 ext 1430 (65) 6320 1379 • Gaming – Regional [email protected] [email protected] • Media • Aviation Kshitiz PRASAD • Food & Beverage • Commerce (91) 22 4223 2607 Christopher WONG TAN Chi Wei, CFA [email protected] Jaroonpan WATTANAWONG (65) 6320 1347 (603) 2297 8690 [email protected] • Banks (66) 2658 5000 ext 1404 [email protected] • Power • Telcos [email protected] Vikram RAMALINGAM • Transportation • Small cap TAN Yanxi WONG Wei Sum, CFA (91) 22 4223 2607 (65) 6320 1378 (603) 2297 8679 [email protected] [email protected] Thanatphat SUKSRICHAVALIT [email protected] • Property • Automobile • Media (66) 2658 5000 ext 1401 [email protected] Fiona LIM LEE Yen Ling INDONESIA • Media • Electronics (65) 6320 1374 (603) 2297 8691 [email protected] Isnaputra ISKANDAR Head of Research [email protected] • Glove • Ports • Shipping • Healthcare (62) 21 8066 8680 Wijit ARAYAPISIT • Petrochemicals [email protected] (66) 2658 5000 ext 1450 STRATEGY • Strategy • Metals & Mining • Cement [email protected] Kevin WONG • Autos • Consumer • Utility • Strategist Anand PATHMAKANTHAN (603) 2082 6824 [email protected] ASEAN • REITs • Technology Rahmi MARINA Theerasate PROMPONG (603) 2297 8783 (62) 21 8066 8689 (66) 2658 5000 ext 1400 Jade TAM [email protected] [email protected] [email protected] (603) 2297 8687 [email protected] • Banking & Finance • Equity Portfolio Strategist FIXED INCOME • Consumer Staples & Discretionary Aurellia SETIABUDI Apiwat TAVESIRIVATE Winson PHOON, ACA Fahmi FARID (62) 21 8066 8691 (66) 2658 5000 ext 1310 (65) 6812 8807 (603) 2297 8676 [email protected] [email protected] [email protected] [email protected] • Software • Property • Chartist and TFEX SE THO Mun Yi TEE Sze Chiah Head of Retail Research Willy GOUTAMA VIETNAM (603) 2074 7606 (603) 2082 6858 [email protected] (62) 21 8066 8500 [email protected] [email protected] Quan Trong Thanh Nik Ihsan RAJA ABDULLAH, MSTA, CFTe • Consumer (84 28) 44 555 888 ext 8184 (603) 2297 8694 [email protected] [email protected] • Banks • Chartist PHILIPPINES Jacqui De JESUS Head of Research Hoang Huy, CFA Amirah AZMI (63) 2 8849 8844 (84 28)