PETALING JAYA: Despite an expected strong total industry volume (TIV) recovery in the fourth quarter of this year for the automotive sector, this is expected to fall by the middle of next year due mostly to the ongoing global microchip issue.
Hong Leong Investment Bank’s (HLIB) research arm said it expects TIV to drop post-sales and service tax (SST) exemption expiry by the middle of next year, and therefore, was maintaining its “neutral” call on the sector.
“Nevertheless, we advise investors to accumulate MBM Resources Bhd
and DRB-Hicom Bhd as we expect national original equipment manufacturers (OEMs) to triumph in the longer-term with potential growth from new export markets.
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