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DRB-HICOM to sell nearly 160,000 Proton, 80,000 Honda vehicles in 2024?

KUALA LUMPUR: DRB-HICOM Bhd is expected to sell nearly 160,000 units of Proton vehicles, marking a 3.4 per cent year-over-year increase, and around 80,000 units of Honda vehicles in 2024.

Kenanga Research said the sales for less popular brands under DRB-HICOM's portfolio like Mitsubishi and Isuzu will likely be subdued due to limited availability of new models.

"Consequently, we maintained our estimates of 158,000 units and 80,000 units for Proton and Honda respectively in fiscal year 2024 (FY24), and 166,000 units and 80,000 units in fiscal year 2025 (FY25).

"DRB-HICOM is strategically advancing Proton towards electric vehicles (EV) in phases with support from Zhejiang Geely Group, aiming to become an EV hub by 2030.

"Proton recently introduced new models like the X50 RC and plans to launch a facelifted X70, with ambitions to sell 200,000 units annually by 2030, including the Proton e.MAS EV on the Global Modular Architecture platform by the end of 2024," it said.

Kenanga Research highlighted that DRB-HICOM plans to reduce its ownership in Bank Muamalat to 40 per cent by 2025 and is committed to revitalising Pos Malaysia Bhd within the next three years.

"Additionally, its defence unit is positioned to secure a new assembly contract for armoured vehicles by 2025," it added.

Kenanga Research finds DRB-HICOM appealing as it ranks as the second largest player in Malaysia's automotive sector, following Perodua, and holds around 30 per cent of the market share.

"Additionally, DRB-HICOM possesses robust Proton and Honda franchises and is enhancing its banking operations through Bank Muamalat.

"Despite these strengths, its prospects have dimmed due to intensified competition from Perodua's aggressive new product launches and challenges from underperforming business units," it said.

Kenanga Research kept its "Market Perform" rating on the automotive industry company, with a maintained target price of RM1.40.

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