KUALA LUMPUR (Dec 22): Hong Leong IB Research (HLIB) has maintained its “Neutral” rating on the automotive sector with MBM Resources Bhd as its top pick (target price RM4) and said November recorded stronger total industry volume (TIV) at 54,300 units (+5.8% y-o-y; +2.1% m-o-m) driven by Perodua Axia as well as aggressive sales campaigns by main OEMs.

In a note Monday, the research house said year-to-date, TIV was 601,800 units (+1.1% y-o-y).

“We expect stronger sales in December from aggressive year end sales,” it said.

HLIB said Perodua reported strong sales of 18,500 units (+24.1% y-o-y; +4.8% m-o-m) due to strong demand for new Axia.

It said Proton sales remained weak at 8,200 units (-11.3% y-o-y; +0.9% m-o-m), due to aggressive sales campaigns by foreign OEMs.

“Toyota, Honda and Nissan sales strengthen mom by +6.0%, +1.5% and +2.7%, due to ongoing aggressive sales campaigns.

“Maintained Neutral on automotive sector with top picks: MBM (TP: RM4.00),” it said.