KUALA LUMPUR (March 3): Hong Leong IB Research has maintained its “Buy” rating on MBM Resources Bhd with a higher target price of RM4.28 (from RM4) and said that in FY14, MBM reported lower year-on-year earnings due to lower lower group sales volume and higher startup related cost (for OMI Alloy Wheel, Hino and Perodua).
In a note Tuesday, the research house said it expects stronger earnings in 2015, with stronger Perodua sales, full year earnings from new Hino plant, and lower losses/breakeven from OMI alloy wheel plant.
“The on-going focus on sales after-services has been bearing fruits with continued expansion into service centers.
“Maintained Buy with higher target price of RM4.28 (from RM4.00) based on SOP,” it said.