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Even though the market is still quite competitive and consumers are spending more carefully these days, the automotive aftermarket industry can still do well because vehicles need regular maintenance, and not to mention the number of vehicles on the road continues to grow
festive auto demand spike, large addressable market, telecom side business, contrarian valuation reset. Stock has been beaten down but the underlying business has structural demand.
Secondary revenue stream for MSB worth tracking, outdoor telecom cabinets and electrical parts. With Malaysia's 5G rollout continuing under DNB and Maxis/Celcom expanding network density, telecom infrastructure equipment demand persists. Not the main business but provides incremental revenue diversification beyond core auto parts. Multi-segment positioning gives some downside protection if auto cycle softens
Cars need lubricants, filters, brake pads, suspension parts, transmission fluids throughout their lifecycle. Aftermarket spending per vehicle per year averages RM800-1,500. So the total addressable market is genuinely large.
Things that often overlooked in aftermarket auto parts businesses, the distribution network is the moat, not the products. Reaching thousands of independent workshops, motor service centers, retail stores across Malaysia requires sustained relationship building.
Each vehicle averages RM800-1,500 annual aftermarket spending. That's a TAM of roughly RM25-50 billion annually. MSB has been in the game since 1992 with established distribution network reaching thousands of workshops. The challenge has been monetization efficiency, but the market size isn't the issue. Real opportunity if management executes properly.
Aidiladha long weekend + school holidays = massive balik kampung road traffic. Cars get serviced before long trips, tires checked, brake pads replaced, lubricants topped up. Workshops see demand spikes during these periods.
