KUALA LUMPUR, March 24 — MIDF Amanah Investment Bank Bhd (MIDF) has revised its 2023 forecast total industry volume (TIV) for the automotive sector upward by 5.0 per cent to 713,000 units, premised on the industry’s order backlog.
It noted that on a year-to-date basis, the TIV is up by 30 per cent year-on-year at 112,128 units, making up 17 per cent of its previous 2023 forecast (2023F) TIV of 678,000.
“Given the strength in industry order backlog and in line with our company-specific upward revisions in the recently concluded fourth quarter calendar year 2022 (4Q CY2022) result season, we raise our 2023F TIV by five per cent to 713,000.
“As such, we have also raised our sector earnings forecast for the financial year 2023 (FY23F) by an average of 14 per cent,” it said in a research note today.
MIDF said it has raised the FY23F earnings on Bermaz Auto (BAuto), UMW and MBM Resources (MBMR) by 27 per cent, 13 per cent and 9.0 per cent, respectively, while keeping its projections for Tan Chong Motor unchanged.
In tandem with the forecast, it also raised the target prices for BAuto, UMW and MBMR’s shares by 20 per cent, 6.0 per cent and 2.0 per cent, respectively.
— Bernama
