Advertisements

9M21 results came in below ours/ consensus FY estimates. Its 23%-owned Perodua (P2) went into the red in 3Q21, disrupted by the multiple lockdowns. This led to a weaker earnings and DPS outlook, as we now project lower vehicle sales in FY21-23 (-5-10%). For that, risk-reward opportunity is in balance now. Our revised TP (-14%), pegged to 8x FY22 PER (mean) offers only a mere 7% upside from here. 

Advertisements