KUALA LUMPUR: MBM Resources Bhd’s shares fell 8% on Thursday following news that Daihatsu Motor Co Ltd will temporarily halt shipments of all vehicles.
According to reports, an investigation found issues involving 64 models, including almost two dozen sold under Toyota’s brand.
The counter slid 8.04%, or 36 sen to RM4.12 at 11.18 am, making it the top loser on Bursa Malaysia. It has risen over 25% so far this year.
MBM Resources has over 20% stake in Perusahaan Otomobil Kedua Sdn Bhd (Perodua).
Perodua said a detailed assessment was being undertaken in response to Daihatsu’s announcement about the suspension of its vehicles due to “procedural irregularities” in its models.
The car manufacturer said it is currently in discussions with Malaysian authorities to assess the impact of this development on its vehicles.
“(We) are currently in discussion with Malaysian authorities as to the impact of this development to our vehicles, and we sincerely apologise to our valued customers and the general public for any alarm this announcement may bring,” Perodua president and chief executive officer Datuk Seri Zainal Abidin Ahmad said.
He said Perodua will share the outcome of the discussion with the public in due course.
Meanwhile, Kenanga Research, in a note, said MBM is its top pick for the automotive sector for its strong earnings visibility backed by an order backlog of Perodua vehicles of 140,000 units, which is equivalent to almost half its CY24 sales target of 330,000 units.
It added that MBM is a good proxy to the mass-market Perodua brand given that it is the largest dealer of Perodua vehicles in Malaysia, as well as its 22.58% stake in Perusahaan Otomobil Kedua Sdn Bhd, the producer of Perodua vehicles as well as an attractive dividend yield of about 11%.
Source: The Star