PETALING JAYA: Apex Securities expects MBM Resources Bhd’s core earnings for the financial year 2024 (FY24) to taper off year-on-year (y-o-y) and recover mildly by 3.8% y-o-y in FY25, in tandem with the anticipated industry-wide slowdown for the automotive sector.
The forecast is based on core assumptions that Perusahaan Otomobil Kedua Sdn Bhd’s (Perodua) sales momentum will be sustained on the back of new model releases and its strong order backlog, the brokerage firm noted.
Apex Securities said the key contributor to MBM’s pre-tax profit in FY23 stemmed from earnings generated by its associates, primarily from Perodua, constituting 67.9% of total pre-tax profit, followed closely by the motor trading segment, from direct dealerships of Perodua, Daihatsu, Volvo, and Volkswagen, as well as after-sales service (13.9%).
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