The decision took into consideration Proton’s sales target of 310,000 units in 2030 and 500,000 units in 2035, its improving customer experiences as well as commitment to introduce new attractive models with improved production and cost efficiencies.
The research outfit has retained its “buy” call on DRB-Hicom with an unchanged target price of RM2.
HLIB analyst Daniel Wong said Proton is expected to achieve its fifth consecutive yearly sales growth in 2023 with its cumulative eight-month period year-to-date (8M2023) sales hitting 116,800, marking a 14.1% year-on-year (y-o-y) increase.
“For 2023, it previously guided a sales target of 150,000 units, indicating a 6.1% increase y-o-y, supported by strong demand for existing models as well as the newly launched X90, and its upcoming S70 C-segment sedan model by year end,” he said.
Furthermore, Wong said if the 500,000-unit target by 2035 is hit, Proton would seal the top spot in terms of sales in Malaysia and top three in Asean.
HLIB Research expects the local carmaker to launch one new model per annum for the next six years, with a total investment of RM6 billion including allocation for product development, product efficiency and capacity expansion.
EV plan on track
On a separate note, Wong said Proton’s electric vehicle (EV) implementation is on track with the first stage being the launch of its “smart” EV distribution in Malaysia and Asean by year end.
He noted that Proton is collaborating with Gentari Sdn Bhd for EV development, mobility and ecosystem of new energy.
“Furthermore, Proton is leveraging Geely’s knowledge and technology to develop its own EV range. Management has guided the new Proton EV model to be launched as early as 2025,” he added.
Wong also said Proton’s overall productivity and cost efficacy ratios have improved substantially over the years.
“We expect continuous improvement in product quality and cost efficiency as Proton consolidates its production to Tanjung Malim (from Shah Alam) by 2026 with investments into better equipped production plants, ” Wong concluded.
As at 12.01pm, DRB-Hicom’s shares remained unchanged at RM1.43, giving it a market capitalisation of RM2.76 billion.