KUALA LUMPUR (Nov 29): Shares of PROTON HOLDINGS BHD [] rose to an intra-morning high of RM3.23 on Tuesday as UOB Kay Hian Malaysia Research raised the target price to RM3.05 on a possible takeover.
At 11.32am, it was up 11 sen to RM3.19. There were 1.10 million shares done at prices ranging from RM3.16 to RM3.23.
UOB Kay Hian Research upgrade Proton to a Hold from Sell previously raised its target price to RM3.05, after imputing a 15% discount (vs 30% previously) to RNAV.
“Should Proton be able to dispose the loss-making Lotus Group, every RM100 million raised from this potential disposal could add 20 sen/share to Proton’s RNAV,” it said.
The research house said there was some truth to the constant speculation of Proton’s impending takeover, after seeing Proton’s somewhat bullish share price action (uptrend but with high volatility) over the past two weeks, recent consolidation in the auto industry (MBM Resources buying Hirotako), ongoing reforms by ailing GLCs (eg Malaysia International Shipping Corporation (MISC) has just announced its decision to cease its liner operations, once thought to be a “sacred cow”).(theedgemalaysia.com)
PROTON HOLDINGS BHD shares dipped at mid-morning on Tuesday, Sept 27 on concerns its sports carmaker-unit Lotus would remain loss-making in the next four years.
At 10.55am, Proton shed 5 sen to RM2.58 with 9,300 shares traded.
Last Friday, Proton had told analysts that Lotus was on track to turn around as the actual result on volume sold has exceeded the management’s target.
However, Affin Investment Bank Research said it expects Lotus to be a drag on the near-term domestic earnings trajectory, adding that implicit in its "depressed" earnings was a RM250 million earnings before interest and tax (EBIT) loss for Lotus.
On the fact that Lotus will be loss-making for few more years, Affin Research said it was not upbeat about Proton’s earnings prospects at least in the next one or two years.
According to the research house, Lotus CEO Danny Bahar confirmed that Lotus’ restructuring plan “is well within the guided timeframe”.
“Lotus is expected to be loss-making over the next four years as the management is in the midst of restructuring and developing new products before turning in profit in 2015,” it said.(theedgemalaysia.com)
PROTON HOLDINGS BHD and TAN CHONG MOTOR HOLDINGS BHD shares retreated on Friday, July 15 after Frost & Sullivan cut its vehicles sales projection for 2011. At 9.40am, Proton was down five sen to RM3.16 while Tan Chong fell six sen to RM4.82.
Frost & Sullivan on July 14 said vehicles sales in Malaysia will dip to 615,900 units in 2011 from the earlier projected 623,000 units due to supply chain disruptions from the impact of the March 11 Japan earthquake.
It said that TIV for 2011 would be impacted due to production slowdown and delay in key models launches by automakers.
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