Perodua Demand Supports MBMR Outlook - Analysts

KUALA LUMPUR, May 28 (Bernama) -- MBM Resources Bhd (MBMR) is expected to chart steady earnings this year backed by resilient Perodua demand, despite a soft start to the first quarter (1Q) 2025.

Maybank Investment Bank said Perodua remains on track to meet its financial year 2025 (FY2025) sales target of 345,000 units (-4 per cent year-on-year), despite a soft 1Q start due to seasonal effects and an excise duty issue that was resolved only in January 2025.

“While 2Q sales may remain soft due to scheduled plant shutdowns in April and June, demand is resilient, backed by a strong backlog of over 80,000 units,” it said.

Maybank Investment also said MBMR is not expected to be involved in Perodua’s upcoming electric vehicle launch in 4Q as it will be managed directly by the original equipment manufacturer during its initial phase.

Maybank Investment Bank maintained a “Hold” call on MBMR, with a target price of RM5.63.

Meanwhile, Hong Leong Investment Bank said MBMR reported a commendable 1Q 2025 profit after tax and minority interest of RM71.4 million (-27.1 per cent q-o-q; -11.1 per cent y-o-y), which met expectations.

“We see sustainable quarterly earnings, backed by still strong demand for Perodua.

“Perodua has a sales target of 345,000 units for 2025, supported by current order backlogs of 97,000 units, while new order intake remains healthy.

It maintains a “Buy” on MBMR with an unchanged target price of RM7.10, based on a 15 per cent discount to a sum-of-parts valuation of RM8.31.

MBMR, through DMM Sales Sdn Bhd, is the largest Perodua dealership in Malaysia.

-- BERNAMA