DRB-Hicom Bhd (+ve)
One of the exciting developments over at DRB-Hicom Bhd (fundamental: 0.4/3, valuation: 1.2/3) is the encouraging pickup in vehicle sales by Proton Holdings Bhd last month.
Proton’s market share in June hit 18.1% — its highest since 47 months ago in July 2015 — as it continued to record sales growth even as total industry volume shrank by an estimated 30.8% year-on-year to 42,090 units that month.
Subsequently, the counter yesterday triggered our momentum algorithm for the second time this month as trading volume surged to over four times its 200-day average at 12.75 million shares to close down one sen or 0.41% at RM2.45.
Year to date, the counter has surged by 44.12%. Bloomberg data show that DRB-Hicom has four “buy” calls and two “hold” calls, with a target price ranging between RM1.78 and RM3.05 at an average of RM2.51 per share.