KUALA LUMPUR (Jan 9): DRB-Hicom Bhd rose as much as 16 sen or 7% to RM2.60 after 34%-owned associate Honda Malaysia Sdn Bhd said 2017 vehicle sales rose 19% to 109,511 units from 91,830 units a year earlier.

Honda Malaysia said in a statement today the 2017 sales volume was the highest in the company's history since it was established in 2003. "This is also the first time that Honda Malaysia achieved sales of more than 100,000 units. This sales figure is also the highest that a non-national brand has ever achieved in Malaysia," Honda Malaysia said.

At Bursa Malaysia, DRB-Hicom shares were traded at RM2.54 at 3:19pm with some 31 million units changing hands. DRB-Hicom shares were transacted between RM2.40 and RM2.60 so far today.

DRB-Hicom's latest-reported book value stood at RM3.54 as at Sept 30, 2017, the company's quarterly financial statement showed.

Today, RHB Research Institute Sdn Bhd analyst Alexander Chia told theedgemarkets.com that DRB-Hicom shares has been undervalued for some time after taking into account DRB-Hicom's latest-reported book value.

"DRB-Hicom's assets are undervalued — it owns attractive physical assets and various profitable businesses," Chia said.

Besides Honda Malaysia, DRB-Hicom also owns a 50.1% stake in Malaysian national car manufacturer Proton Holdings Bhd. Zhejiang Geely Holding Group Co Ltd owns the remaining 49.9% stake in Proton.

DRB-Hicom's website shows that its other businesses include property development and hotel operations besides financial services.