IST25030
Transcript of IST25030
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will also be o taxes. By 2
s, double thtal industry v
EV tax exeBU) hybrid
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near-term r
tant documer the industry,FDIs from gngineer lowe
ing environmllenging. Whirket competitt margins. O
alysts to re-rM, Berjaya A
Price
YR5.72
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YR5.60
R11.58 M
HB Estimates ^F
Po
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the key poli
he succes
are sufficie
ts in Malaysi
time to mat
s a regional
e Policy (NAgy-efficient vland and Ind eco car inie. The NAP
gy agnosticns) hurdles.uction faciliti/or selling pffered. This c020, the Nexports of plume to 1m
mptions scrnd EV vehicl
such vehiclerid and EVe adverselyed of CBU
s. The Hondlaysia.
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te the sectorto and Tan C
Target
YR5.50
YR1.95
YR3.40
YR3.40
YR7.25
YR12.50
Y14 valuations re
wered by Enhanced
Sector Upd
Neut
Automot ive
cy thrusts ha
of the pol
tly convinc
a. The trickl
erialise. NEU
hub for EE
P) is to makeehicles (EEV)nesia have
itiative while Idefines whatn how manuf
Manufactures for EEVs
rices while uuld includeP targets to
arts and comehicles (201
pped.The tles has been
that are loc will continaffected ashybrid modelJazz Hybri
yst for the s
the ball rollinat the fruits f
revitalising aill take timeotive manuf
domestic deasingly pricek the sector
higher. We rhong. NEUT
FY14FP/E (x)
FP/
8.6 1
11.4
13.3
9.1
9.3
13.2
fer to FY15 data
Datasystems EFA
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d already be
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lly-assemblee to enjoybout 6% of
ls that will n is currently
ector.While
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and to stay-sensitive coaluations are
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NA
ary 2014
ortant disclos
2014
ures at the en of this report
To estabNationalenergy efIndonesiawhile Indexactly cmeet the
allowed tengine caincentivetargets toexports ovehicles (
Hybrid a(CBU) hyfor such vwill contin6% of itslonger quhybrid mo
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Introductcontain aare suppdefinitionrequire thEuro 4 fu
Car prictowards afor car pricombinedlocal valu
savings a
Reducedmean incthat it hapowertraisystems.raise provolume.
Figure 1
i. Promocompan
ii. Make
iii. Prom
iv. Promv. Promautomotvi. Safeprices
Source: MI
lish Malaysiutomotive P
ficient vehicle have establionesia hasnstitutes anfuel efficien
o establishpacity and/or. This couldachieve by 2parts and co2013: 652,12
nd EV tax ebrid and EVehicles that aue to enjoy t
sales volumealify for the tdel in Malays
king on NA
proposed forAPs by 2020 assess thee industry. N
ion of Euroy details on
osed to meeis only basede availabilityl will be ann
e reductionchieving a 2ces to declin with OEMse add. The a
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protection feased compbeen invests, a new en
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te a competitiveies
Malaysia as reg
ote increase in v
ote increase inte participation
ive industryuard consumer
ITI
a as a regiolicy (NAP) iss (EEV), soished. Note t low cost gEEV and willy (and emis
anufacturingselling priceinclude R&
020, the genmponents to0 units).
xemptions sehicles has bre locally asshe tax exems in 2013 wex breaks. Th
ia.
2009 initiat
the terminati. The Governimpact of thitime frame
4 fuel still phe introductit both efficieon fuel efficif Euro 4 fuelunced later t
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NAP 2014 arade fuel (pe
issions hurdlcle category)he time fram
nment reiterby 2017. Wironment ne
incentives anive duties an
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tion of the Ning years. Pring the deveid and other2-30A) will beconomies of
otive industry in
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able manner
e componentstotal value chain
etter quality pro
core objectivnal automotitart that Thailn Eco care NAP definn how manurers of EEV
t any restricndefined cuwer taxes. T,000 jobs, dodustry volum
ion for fully inow only becks of hybridely affectedid models thrrently the o
2009 iteratio
ts (APs) by 2ndertake ana participatiothis study.
nnouncemenrol and dieses. The curr
as emissionfor the avail
ted its cobelieve thatds to be encd raising thed the transm
rices.
P 2014 initiaton recentlylopment of aalternative prcritical to enscale and li
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ive
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Auto21 Jan
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ary 2014
ortant disclosures at the en of this report
Figure
Technispecifi
Fuel eff
Carbon
Engine
Emissio
Safety r
Source: MI
Figure
Investm
Investm
Product
Excise t
Source: MI
Figure
Item
Fuel ec
Targettype
Tax bre
Price co
Source: MI
: Thailands
alation
iciency
emission
capacity
n standard
egulation
ITI
: Thailands
ent criteria
ent (min)
ion per annum
ax incentives
ITI
: Indonesia
Lo
nomy
ehiclePetr
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ak 0% (
ndition
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ITI
eco car tech
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ba1.4L or sm
ba
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eco car inve
THB5
(min) 100,0
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low-cost gr
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20km/L a
ol car: 1.0 - 1.2L
el car: 1.0 - 1.5L
currently at 10%
he road price ofR 25,500)
uding ownershipcle tax and local
nical specs
se 1
5L/100km
n 120g/km
aller (petrol-
sed)aller (diesel-sed)
or higher
pliance to R94
stment criter
Phase 1
bn (MYR0.51bn
00 units
normal at 30%)
een car
ar (LCGC)
nd more (NEDC:
)
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transfer fee,tax
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EU
nd R95 (front a
ia
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100,000
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FE 28km/L and(currently 20-7
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Phase 2
than 4.3L/100k
s than 100g/km
maller (petrol-ba
maller (diesel-b
RO 5 or higher
nd side impacts)
Phase 2
n (MYR0.66bn)
units
rmal at 30%)E85 compatible
n Emission Pr(LCEP)
Driving Cycle)
, alternative fu
25% reduction (
more: 50% red%)
: 0%
3
sed)
sed)
oject
l
currently
uction
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Auto21 Jan
See imp
ary 2014
ortant disclos
Fig
Sour
Fig
Sour
ures at th e en
re 5: Malay
ce: MITI
re 6: Malay
Segment
A
B
C
D
E
F
J
Others
ce: MITI
of this report
ias EEV def
ias EEV spe
De
Micro car
City car
Super mini c
Small family
Large family
Compact ex
Executive ca
Luxury car
Large 4x4
Others
inition
cifications
scription
r
car
car
cutive car
r
Curb weight (k
< 800
801 - 1,000
1,001 - 1,250
1,251 - 1,400
1,401 - 1,550
1,550 - 1,800
1,801 - 2,050
2,051 - 2,350
2,351 - 2,500
) Fuel efficien
1
1
1
cy (L/100km)
.5
.0
.0
.5
.0
.5
1.0
1.5
2.0
4
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Figur
Pass
Total
Total
Expor
Com
Total
Moto
Total
Source:
Figur
Stock
APM
BerjayaAuto^DRB-HICOM
MBMTan Ch
UMW
Sector
Source:
ary 2014
ortant disclos
7: NAP 201
enger car
production vol.
industry vol.
ts
ercial vehicl
production vol.
rcycle
production vol.
MITI
10: Sector t
Price
(MYR
5.72
1.85
^2.77
3.41ong 5.60
11.58
Avg
Company data,
ures at th e en
targets
able
FairValue(MYR)
5.50
1.95
3.40
3.40
7.25
12.50
HB estimates ^F
of this report
2020
U
1.25m
1.0m
250,000
U
100,000
U
800,000
Mkt Cap F
(MYRm)
1,153.2 D
1,488.8 A
5,355.1 M
1,330.6 D
3,763.2 D
13,528.8 D
Y13-14 valuation
2013
nits
~0.57m
~0.65m
~20,000
nits
~55,000
nits
~430,000
E EPS gro
(%)
FY13
ec 1.2
pr 83.6
ar 57.3
ec 1.6
ec 69.9
ec (15.8)
32.9
refer to FY14-15
Figure
Incent
InvestCondit
Safety
Figure
Item
Soft l
Develo
Comp
Comp
Establi
Develo
Total
Grant
Huma
Bumip
Total
Source:
wth
FY14 FY1
13.1 9.7
25.0 14.
57.1 20.
16.1 10.
46.5 13.
27.5 16.
30.9 14.
data
8: NAP 2014
ives
mention
9: NAP 2014
an
pment of tools,
nent technology
titiveness relate
shment of distrib
pment of EEV in
capital develop
utera developme
ITI
PER
(x)
3 FY14
8.6
11.4
13.3
9.1
9.3
13.2
10.8
EEV incenti
Customized ias:
-PS, ITA
-Grants (Rese
-Infrastructure
-Lower Taxes
-Expatriates
NoneGradual compl(WVTA)
funds alloc
ies and mould
pre-commercia
d activities
ution infrastruct
frastructure
ment
nt
P/B P/
(x) (x
FY14 FY
1.09 4.
3.93 12
0.70 2.
0.85 24
1.51 8.
2.06 7.
1.69 9.
es
centives for bo
rch & Developm
Facilitation
iance to Whole
tion
lization
ure
F ROE
) (%)
14 FY14
1 13.3
.1 34.6
9 5.6
.7 10.2
7 17.4
4 16.0
9 16.2
th FDI and DDI
ent, Training)
ehicle Type Ap
MYR
765
575
295
125
130
1,890
100
75175
NDY
(%)
FY14
3.8 NE
2.2
1.5
2.9 NE
2.1
5.2 NE
3.0
5
such
roval
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RHB Gu
Buy:ShTradingNeutral:Take PrSell:ShNot Rat
Disclos
All reseawarrantyto transainformatinot haveinformatifinancial
RHB, itssecuritiemateriallin this remay sellunderwriresearch
RHB anfrom anare allegThe terand shal
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rch is based on, express or imct any securitieion purposes oregard to the sion of addresseadvice to inde
affiliates and rs of the compay interested insearch report athem or buy thiting services foreport.
its employeesreliance baseed to have aris
RHB shall dl refer to RHB
s Reserved. Thof RHB and RH
rt is publisheduala Lumpur, a
re
rt is publishedSecurities Pterhad, Malaysiaubsidiary of RHSecurities Ptetherefore class
January 2014,in the securiti
January 2014,
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xceed 10% ovce may exceedy fall within the has been attll by more thanwithin regular
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note where apesearch Institu
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research cover
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s, their respecin this researcities. Further, R
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in Singapore bure between Dce merged intod). DMG & Pa
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by an RHB entstors" or "Accrtor" or "Accredatters arising f
in Hong Kongestment Banka wholly-own
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onthsext 3 months,% over the neccumulate at lonext 12 monthsge
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sociates, connecurities relateand related cor or have assuay also perforolicit such inv
directly, indiren in relation to tunication bein
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nly and may nns of third parti
Institute Sdnank Berhad (
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bsidiaries, inclu
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MG & Partners" as defined in this research rection with this
ecurities Honga which have sRHB Capital B
f 1% or more os, have receiv
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time of writing,rt of this reportise. This reporlated compani
cular needs off judgment by
ected parties ad thereto, andmpanies do aned an underwror seek to perstment, adviso
tly or consequhis report, incluperceived as
ort in the particbsidiaries and
t be reproduces in this respe
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te Ltd (Reg. NPte Ltd (a subsi(the merged eember of the Sired in this rep
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research report
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mentioned speies.
published for
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merly known asent Bank Berh
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presentation or solicitation ofeen preparedined in this repport is for theseparate lega
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company(ies)of such compaking, advisory
ntity mentioned
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ny purpose wit
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d subsidiary of) and OSK Invwhich in turn isTrading Limites dealing activi
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