KUALA LUMPUR: The e-invoicing implementation is expected to affect car sales as buyers may struggle to obtain the "full loan" provided by certain sales agents, said TA Securities Holdings Bhd.
E-invoice is a digital version of a transaction between a supplier and buyer, replacing traditional documents.
E-invoicing will initially be imposed on companies with annual revenues over RM100 million in August, before being expanded to those with revenues between RM25 million and RM100 million on Jan 1, 2025.
It will be mandatory for all companies from July 1, 2025.
"Since all invoices must be submitted directly to the Inland Revenue Board (IRB) via the e-invoice portal, sales agents won't be able to easily markup invoices, as all figures must match across documents," TA Securities said.
Sales agents who provide full loan inflate invoices with additional charges, it added.
The firm kept its 'Neutral' call on the sector.
It said despite the introduction of new models, facelift versions and new variants, forthcoming car sales might be influenced by declining consumer sentiment amid the implementation of the targeted fuel subsidy scheme.
TA Securities' total industry volume (TIV) forecast for 2024 remains at 700,00 units, down 12.5 per cent year-on-year (YoY).
Its top picks in the sector include Bermaz Auto Bhd with a target price (TP) of RM2.74, Sime Darby Bhd (TP: RM2.85) and MBM Resources Bhd (TP: RM4.70).
The Malaysian Automotive Association's latest data showed the TIV had dropped 17.2 per cent to 58,000 vehicles in June.
YoY, the TIV was down 7.3 per cent while year-to-date, the figure reached 390,300 units, up 6.6 per cent from the previous year.
The growth was primarily driven by strong performance in the passenger car segment, which grew 9.2 per cent to 356,900 units.