KUALA LUMPUR (Feb 23): CIMB Research has maintained its “Neutral” rating on the automotive sector and said despite a promising start, 2014 turned into a challenging year for the auto sector, with minimal industry volume growth and more intense competition among the industry players.
In a note Feb 18, the research house said 2015 should be another bumpy year, with weak consumer sentiment and GST-related uncertainties among the major concerns.
“We maintain our Neutral call on the sector, with a flat total industry volume (TIV) forecast of 670,000 units for 2015.
“Berjaya Auto Bhd (BAuto) is our only Add call and stays as our top pick for the sector. It has the best growth trajectory among the auto stocks under our coverage,” it said.