Auto sector to stay overweight for cyclical recovery in 2021 thesundaily.my - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from thesundaily.my Daily Mail and Mail on Sunday newspapers.
Wednesday, 16 Dec 2020 02:31 PM MYT
The research house expects the industry’s 2021 forecast earnings to be driven by the replacement cycle and economic recovery. Picture by Choo Choy May
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KUALA LUMPUR, Dec 16 RHB Research has maintained its ‘Overweight’ call on the automotive (auto) and auto parts sector as it offers an attractive risk-to-reward ratio for investors to position themselves for cyclical recovery in 2021.
The research house expects the industry’s 2021 forecast earnings to be driven by the replacement cycle and economic recovery.
“We also do not foresee the total industry volume (TIV) to collapse next year once the tax-free period ends as it should be supported by new model launches and gradual economic recovery,” it said in a note today.
Proton Holdings Bhd will be exporting the X50 sport utility vehicle as part of its five market introductions to grow its presence internationally next year.