WE maintain our earnings forecasts, target price of RM5.63 (6.5x FY25E earnings per share, +0.5 standard deviation), and Hold post-briefing. P2 remains on track to meet its FY25 sales target of 345k units (-4% YoY), despite a soft 1Q start due to seasonal effects and an excise duty issue that was only resolved in Jan 25 which temporarily dragging sales. 2Q sales may remain soft due to scheduled plant shutdowns in Apr and Jun, though demand is resilient with a strong backlog of >80k units, supporting its 2H sales outlook. Our Hold on MBM Resources Bhd is underpinned by its attractive dividend yield of >8%, supported by a 60% dividend payout policy. Despite expectations of flattish earnings growth, we believe dividend sustainability remains intact, backed by its strong net cash position. — Maybank Investment Bank Bhd (May 28, 2025)
(Calls by analysts tracked by Bloomberg: 3 Buy, 7 Hold, 1 Sell; Consensus target price: RM5.89)
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