MBM Resources Bhd is a Malaysian company which is in the business of motor trading and manufacturing of auto parts. It has Motor trading, Auto parts manufacturing, Property development and Other segments.
Motor trading segment covers marketing and distribution of motor vehicles, spare parts, and provision of related services. Auto parts segment comprises manufacturing of automotive parts and components, steel and alloy wheels and discs, noise, vibration and harshness products and provision of tyre assembly services.
The property segment includes the development of Menara MBMR and the Others segment encompasses investment holding, corporate headquarter, and dormant companies.
Earning
The motor trading segment generates most of the revenues for the company as shown in the company annual report
Future outlook
Globally, the International Monetary Fund (“IMF”) projected that the global economy would contract by 3% in 2020, an extraordinary reversal from early 2020 when the Fund forecasted that the world economy would outpace 2019 and grow by 3.3%. According to the IMF, this year’s fall in output would be far more severe than the last recession, when the world economy contracted by less than 1% between 2008 and 2009.
With these bleak data and forecasts in mind, we expect to face a very challenging year ahead indeed. The reduced demand will certainly intensify competition from other brands and new dealers and put tremendous pressure on our volumes and margins. At the Manufacturing side, we likewise expect significant reduction in production demand from carmakers, exacerbated by delays in vehicle pricing approvals for certain carmakers, which in turn will further affect our production supply.
To counter these challenges, the Group has refocused its Transformation Programme that commenced earlier this year to formulate strategies in driving mid to long-term growth, as well as taking mitigating actions in current operations post-MCO period through cost rationalisation and efficiency improvement, tightening of performance measurements as well as adjusting of product and service offerings.
The Group will continue with our current focus to improve after-sales volume and margin to partially negate the flattish vehicle demand. At our manufacturing plant, an increase in automated facilities is also in the pipeline to increase efficiency and profitability in the long run.
CEO Statement, AR19
SST Exemption
In a surprise announcement, the government announced via a memo issued to the Malaysian Automotive Association (MAA) and Malaysian Association of Malay Vehicle Importers and Traders (PEKEMA) that there will be an extension to the new vehicle sales tax exemption (including MPV and SUV) to 30th June 2021 which has been in place since 15th June 2020 and was originally scheduled to end on 31st December 2020.
| Date | Target Price | Price Call | Source |
|---|---|---|---|
| 06/01/2021 | 5.70 | BUY | HLG |
| 05/01/2021 | 5.00 | BUY | HLG |
| 04/01/2021 | 4.51 | BUY | AmInvest |
| 30/12/2020 | 4.10 | BUY | KENANGA |
Wyckoff Study
TOP 10 INVESTORS
| INVESTOR NAME | % O/S | POSITION (M Shares) | POSITION CHG (M) | VALUE(M USD) | FILING DATE | FILING SOURCE |
| Med-Bumikar Mara Sdn. Bhd. | 49.5 | 193.5 | 0 | 130.72 | 30-Apr-20 | Other Substantial/Declarable |
| Employees Provident Fund Board | 9.56 | 37.37 | -0.39 | 27.52 | 10-Nov-20 | Other Substantial/Declarable |
| Lembaga Tabung Haji | 5.33 | 20.84 | 1.22 | 14.6 | 05-Nov-20 | Other Substantial/Declarable |
| AIA Bhd. | 4.36 | 17.03 | 1.28 | 11.5 | 30-Apr-20 | Other Substantial/Declarable |
| Public Mutual Berhad | 2.49 | 9.75 | -4.22 | 6.58 | 30-Apr-20 | Other Substantial/Declarable |
| Yap (Lim Sen) | 2.02 | 7.91 | 2.88 | 5.35 | 30-Apr-20 | Other Substantial/Declarable |
| Public Islamic Opportunities Fund | 0.99 | 3.86 | 2.26 | 2.8 | 31-Jul-20 | MF |
| Manulife Investment Management (M) Berhad | 0.98 | 3.82 | 1.79 | 2.77 | 31-Jul-20 | Aggregate MFs |
| Federal Realty Company Sdn. Bhd. | 0.92 | 3.6 | 0 | 2.43 | 30-Apr-20 | Other Substantial/Declarable |
| PMB Investment Berhad | 0.85 | 3.34 | -1.04 | 2.26 | 30-Apr-20 | Other Substantial/Declarable |