KUALA LUMPUR: MBM Resources Bhd surpassed analysts' expectations for its nine-month 2024 (9M24) results, driven by higher-than-anticipated sales volume from its Perodua dealership network.
CIMB Securities noted that MBM's 9M24 revenue grew by 6.3 per cent year-on-year (YoY) to RM1.8 billion. The increase was primarily attributed to a 7.9 per cent rise in revenue from its motor trading and assembly division, underscoring robust performance in the segment.
"The 9M24 results beat expectations, making up 76 per cent and 82 per cent of our and consensus full-year estimates owing to higher-than-expected sales volume from its Perodua dealers," it said in a note.
CIMB Securities said MBM Resources also declared a bumper 29 sen/share total dividend per share (DPS) in the third quarter (Q3) 2024, raising its 9M24 DPS to 45 sen, beating the firm's and consensus expectations.
"Moreover, we see room for a higher dividend for the financial year 2024 (FY24) given that the group traditionally proposes its final annual dividend every April," it said.
CIMB Securities Research has raised its FY24 to FY26 earnings per share (EPS) projections by 1–5 per cent as it has revised up Perodua sales volume forecasts.
The firm now expects Perodua sales volume to grow by 8 per cent year on year (yoy) to 355,000 units (vs. 336,000 units previously).
Meanwhile, Hong Leong Investment Bank Bhd (HLIB) said MBM Resources's net profit came above the firm's expectations (80.2 per cent), and consensus (81.8 per cent).
The bank expects MBM Resources to continue to leverage the strong Perodua sales into Q4 2024, given the still high order backlogs of over 90k units and still healthy new order intakes.
"Perodua is expected to launch a new B-segment SUV model and an EV model in 2025.
"Overall, we maintain a Buy on MBM Resources with an unchanged target price of RM6.80. We expect further dividend payout in the coming quarter on top of the already declared high YTD dividend of 45 sen/share," it added.