KUALA LUMPUR: Maybank Investment Bank Research (Maybank IB) said the March 2011 auto sales were abnormally strong, which it viewed as a one-off event.
'Looking ahead, Malaysia's car production is expected to soften in the months ahead, affected by the supply chain disruption in Japan. The auto sector remains a Neutral,' it said on Wednesday, April 20.
Maybank IB Research said the longer-term operating landscape lacks catalyst and remains close ended, deterring foreign automakers from making Malaysia a regional hub.
'Stock-wise, share price is expected to trade sideways. MBM and Tan Chong remains a Buy while Proton and UMW are Holds,' it said.
It said that March total industry volume'' (TIV) jumped an unprecedented 57% on-month to 63,265 units. The strong sales were atypical; the Malaysia Automotive Association (MAA) concurred with this view.
'We opine the unusually strong buying pattern was driven largely by prospective customers front-loading their purchases ahead of the supply chain disruption affecting the auto industry. March 2011 auto sales are arguably the highest, surpassing the previous record of 56,139 units in March 2010. YTD, new registrations grew 7% YoY to 147,415 units,' it said.
'Looking ahead, Malaysia's car production is expected to soften in the months ahead, affected by the supply chain disruption in Japan. The auto sector remains a Neutral,' it said on Wednesday, April 20.
Maybank IB Research said the longer-term operating landscape lacks catalyst and remains close ended, deterring foreign automakers from making Malaysia a regional hub.
'Stock-wise, share price is expected to trade sideways. MBM and Tan Chong remains a Buy while Proton and UMW are Holds,' it said.
It said that March total industry volume'' (TIV) jumped an unprecedented 57% on-month to 63,265 units. The strong sales were atypical; the Malaysia Automotive Association (MAA) concurred with this view.
'We opine the unusually strong buying pattern was driven largely by prospective customers front-loading their purchases ahead of the supply chain disruption affecting the auto industry. March 2011 auto sales are arguably the highest, surpassing the previous record of 56,139 units in March 2010. YTD, new registrations grew 7% YoY to 147,415 units,' it said.
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