Monday, March 12, 2012

Proton (Hold) - Proton 3-21A- Arriving Soon


Proton (Hold)
Proton 3-21A- Arriving Soon
Analysts were given opportunity to test drive Proton’s P3-21A 1.6L or better known as Persona Replacement model  We were impressed by P3-21A performances, showing great improvements as compared to previous Proton’s model.
Great efforts were being put into the safety features of P3-21A in meeting ECE safety requirements.
P3-21A is targeted towards medium to high income group.
The development cost of P3-21A is relatively low at RM300m for it uses the existing platform and engine from Exora. Hence, we expect the car to garner higher margins.
Despite the great performance by P3-21A, the pricing will remain as a major determinant in car sales volume. Furthermore, the responsible lending guideline is expected hit low-mid end car sales especially Proton and Perodua.
We view the fuel consumptions of ~19sen/km as relatively high as increasing number of consumers are giving more emphasize on fuel efficiency.
Maintain Hold with TP of RM5.50.

Source: HLIB Research 12 March 2012

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