KUALA LUMPUR, Aug 9 (Bernama) -- AmResearch Sdn Bhd has maintained its 'overweight' call on the motor vehicle sector given the possibility of Perusahaan Otomobil Kedua Sdn Bhd (Perodua) producing sedan models.
In a note today, AmResearch said the 1.3-litre compact sedan (B-segment), the largest segment in Malaysia's car market, accounted for 30-40 per cent of total industry volume.
"There is a possibility of Perodua introducing a sedan model, particularly in the 1.3-litre compact, which it is currently absent.
"The move should strengthen Perodua's B-segment foothold and give the Proton Sage a run for its money," it said.
AmResearch said if Perodua proceeded with the project, it would not only strengthen its foothold in the industry but also benefited the parts players.
"The parts players are the clear winners should Perodua proceed with the project given an entirely new volume model coming into the market, which should increase parts orders," it said.
The research house said the parts players likely to be clear winners were APM Automotive Holdings Bhd and and MBM Resources.
It has recommended buy calls on the two players with fair value of RM6.50 for APM and RM4.70 for MBM.