Automotive (OVERWEIGHT)
Malaysia Feb 2012 TIV - REBOUNDED
Despite effect from Thailand
flood and tightening of bank lending rules, MAA’s Feb 2012 data indicated TIV
recovering growth of +9.0% yoy and +7.5% mom indicating returning of consumer
interests. Nevertheless year-to-date Malaysia TIV still suffer -10.8% yoy. We
maintained our +6% TIV growth in 2012 due to : 1) continued consumerism; 2)
improved household income; and 3) supply normalization.
The dominant national cars reported lower combined market share of 59.0%
in Feb vs 61.4% in Jan 2012. Perodua (UMW and MBMR) had a strong rebound in Feb
with +22.0% yoy and +10.3% mom, thanks to Viva and Alza. On the other hand,
Proton reported sales drop in Feb with -6.1% yoy and -5.1% mom.
Toyota (UMW) reported significant jump in Feb sales with 34.2% yoy and
47.9% mom, on the back of strong delivery of Hilux, Vios and Avanza. Nissan
(TCM) reported relatively sustained sales in Feb with -2.3% yoy and +3.6% mom.
Honda (DRB) was only able to deliver CBU units in Feb due to shutdown of Melaka
assembly plant and hence the growth of -84.6% yoy and -28.5% yoy.
Hybrid cars sales increased 6.0% mom to 443 units with new market
entrance of Honda CRZ (RM115k) and Toyota Prius C (RM97k). Honda recently
launched Jazz Hybrid at RM95k (cheapest in the market). We expect continued
strong demand for hybrid cars in 2012, due to lowered price (tax free) as well
as its fuel economy advantage.
We remain OVERWEIGHT on the sector. Top picks of the sector are DRB (TP
of RM3.50), TCM (TP: RM5.10) and UMW (TP: RM8.25).
Source: HLIB Research 22 March 2012
No comments:
Post a Comment