I am skeptical of DRBhicom taking over of Proton. As for the intended cooperation with Honda, nothing concrete was announced at all. It's not the norm for Honda to work with other car manufacturer. Can't recall Honda ever worked with or transfer tech to any other car manufacturer globally. In terms of fuel efficient technology Honda is way ahead of other car manufacturer. Why should they transfer their tech to Proton? Previous experience with Mitsubishi, another Japanese brand for 30 years was not a lesson well learnt. For Drbhicom being an assembler is another ball game from being a quality manufacturer through Proton. For one public opinion of Proton is very low negativity. And to uplift this confidence needs tremendous effort including throwing freebies and years of warranty. Will Proton brand really worked first in the local market and then internationally or because of Proton, DRBhicom will eventually collapsed under the weight of the acquisition. Already RM1 bill of loans are due and payable in 2013. Firesale of DRBhicom non core businesses are ongoing to pay for the acquisition. The question is, is DRBHicom using its resources efficiently or is it using shareholders good money chasing after a bad investment forced into them by the Government.

maybe should start looking at proton shah alam area land banks ..... the land around that area is huge with capital appreciation (in book) will help to clear some debts kua.....

Agreed there are value to its land in Shah Alam, but it's used as a manufacturing plant at the moment. We are not talking about asset stripping of Proton but about it's viability and the ability of DRBhicom to transform Proton to an international brand without superior technology. Anyway, DRBhicom denied it will be shifting all manufacturing to Proton city.

http://biz.thestar.com.my/news/story.asp?f...28&sec=business

tv7 news at 8pm today.
1. shah alam man plant will not be moved to tg malim.
2. coo stated to revamp lotus for positive return.
3. dr m was seen at guving good words to support drb and proton.
4. pm stated our klse ci will hit 1700 tis or next week.

Yes, Proton still used all the land in Shah Alam, so it's locked for plant utilization. As to revamp of Lotus, this is not the first time, during the last CEO and before that there were several revamps all down the drain. Don't put your hope, all more talk no positive results. Every car launched you see the Oldman there but Proton cars just can't sell well. The reason is obvious. When you expounded "kulitfication" as life time philosophy and ignore meritocracy, what do you get? You produce in quantity but no quality. So the market is at all time high, take the opportunity if possible for trading buys(hit and Run) but not for long term in DRBhicom


Latest DRBhicom to be taken private and proposed Asian Car rebadged of VW model, and no mentioned of Proton. Dead and buried?

http://www.theedgemalaysia.com/business-ne...ar-project.html

This post has been edited by alenac: Jan 9 2013, 05:13 PM

proton will not die off as it feeds over 400 vendors as i waz told by my professors. yes, it seems like a dying corporation in biz perspective but with that orang tua around who knows what will happen to proton? anyway i hope proton and drb live on for so many reasons .... even with the threat of afta i hope this local sucker can survive. but biz wise it looks absolutely future-less. lol

http://biz.thestar.com.my/news/story.asp?f...49&sec=business

KUALA LUMPUR: Shares of DRB-Hicom Bhd advanced on Thursday, underpinned by reports of a possible privatisation of the group with CIMB Equities Research expecting such a move would unlock immediate value.

At 10am, it was up 10 sen to RM2.73 with 9.95 million shares done. Its call warrants, DRB-Hicom-CQ added 1.5 sen to 19 sen, and DRB-Hicom-CL 3.5 sen higher at 20 sen but DRB-Hicom-CR shed 0.5 sen to 19.5 sen.


so... does it sound true?

nope. things are not THAT rosy. proper investors would not get near the call warrants, altho i do sometimes speculate for not more than 1/2 hour. lol.

"However, Wong said at the stock's current price, DRB-Hicom is still a "severely-undervalued counter". This compares to its
latest reported net assets per share of RM3.27" quoted from theedge

agree. nav > current price. please refer to table on first page of attachment.


Attached File(s)
 DRBHicom_CIMB.pdf ( 437.13k ) Number of downloads: 37

Please do not looked at NAV. There r many counters in KLSE which r below NAV. Looked at individual asset and what's management plans on the asset. Then looked at overall strength of the company.

Latest in the Star, CEO dismissed privatization plan.

Latest: Proton seen losing market share to Toyota in 2013.

http://www.theedgemalaysia.com/business-ne...-pressure-.html



This post has been edited by alenac: Jan 15 2013, 11:17 PM

Plzzz up up to 2.95. hopefully can get ang pow b4 cny..

is that so?

its business, and its a cut-throat situation. Your professor is so wrong, take a look at the auto industry in UK. To survive, one must branch out to other businesses.
we are not doing a charity work here, its simply business.

Proton MUST go. Enough said, and this PROTON is the reasons of us cannot afford a good quality car and changes in so many law just to protect the underperformed PROTON.
And yea, before Saga, cars are cheap. Come Saga, we are doomed.

DrbHicom CEO selling Optimism for Proton. All big feel good figures .......any substance?

http://www.thesundaily.my/news/589718

If we analysed the CEO optimistic production targets, he sounds more like producing rebadged VW than proton. If that is the case then turning the "Asian (VW) car" as mass market model may worked. If using VW outdated or previous generation technology may end in disappointment.

"In reaching our 500,000 (annual) target, our emphasis will have to include the export market," its executive chairman Datuk Seri Mohd Khamil Jamil (pix) told reporters during DRB-Hicom Bhd media get-together and drive to Tanjung Piai, Johor over the weekend.

The national car maker expects exports to account for 20% of the total production by then.

No car assembler and manufacturer in Malaysia has ever exported up to 100000 units per annum. Perodua at around 10000 per annum at most. And to produce and sell locally 400000 units per year while the current market consumed only slightly more than 600000 units is rather ambitious. The Proton vehicles must cornered at least 50% to 60% market share 5 years later.

Is the CEO a bullshitter?

This post has been edited by alenac: Jan 16 2013, 10:42 PM

- It is reported in the media today that DRB Hicom's (DRB) CEO Datuk Seri Mohd Khamil had hinted that the group would be active in corporate exercises this year as the group seeks to improve its bottom line and reduce gearing. Nonetheless, he stopped short of indicating which part of DRB's business would be involved. That aside, the group is targeting the divestment of its stake in UniAsia by 4Q2013. As far as the divestment of Bank Muamalat is concerned, there have been discussions with Affin Bank and there have also been interests from two more parties.

- Looking at its businesses, we find that the group could unlock a sizeable value from its property division given the assets in hand. It has a remaining GDV of RM11bil with key assets coming from Glenmarie Heights (1,500 acres at GDV of RM8bil) in Iskandar Malaysia and also the Jalan Tun Razak (opposite IJN) development worth RM900mil accounting for 50% and 20% of its residential development market value.

- We are not ruling out a possible spin-off of its property arm especially given the robust interest in Iskandar Malaysia currently. Recall there has been slew of land deals in Iskandar over the past few months involving Mah Sing and WCT and several high-net worth investors. In fact, Tan Sri Lim Kang Khoo's Iskandar Waterfront Holdings (IWH) has been in the news for a possible listing with an angle of second play into Iskandar Malaysia.

- DRB's property division accounts for about 22% - including its investment properties and hotel and resorts - of our SOP value of RM10.7bil for DRB Hicom, albeit at a conservative average selling price assumption.

- From a valuation standpoint, DRB is currently trading at an attractive CY13 PE of 9x versus its conglomerate peers of 17x. It is also trading at a steep discount of 37% to its SOP value.

- We believe there will be strong interests for the stock in the near term given the expected strong newsflow with the general election around the corner.

- We maintain our BUY rating on DRB Hicom at RM3.80/share.

Source: AmeSecurities

Whatever earned from Property and Military contracts to cross subsidy Proton ever hungry CAPEX. CAPEX could be around RM500 mill for each new model. CEO indicated probably 3 or 4 models within 5 years. That is provided the property can really sell for the next 3 years. Remember too, that not all DRB properties to be developed are in prime areas. In other words, the momentum of sales for each project vary, so too will the profit and cashflow. .

But for 2013, experts have forecast sluggish demands for property in Malaysia and consistent with the chinese Lunar year of the water snake, property sector will lag other sectors such as O&G , Transportation etc. Thus, consumers will not put their money in properties as much as previously. Moreover UBS Investment reported that 2013 property developers will focus more on affordable housing, meaning low profit housing projects

DRBhicom gearing expected to further increased with 270 mill pound sterling to be fully released to support a turnover plan for Lotus. (at least RM1.4 billion) The loan to manufacture and sell at least 2000 cars per year.

"On Lotus, he said Proton was currently talking to the consortium of bankers to release the remainder of the £270mil syndicated loan given to the UK-based carmaker."


http://www.star-motoring.com/News/2013/Go-...roton-told.aspx


Update: UBS on prospect In the Malaysian Property market.

The research house pointed out that the high-end property sales in Malaysia were sluggish while the mid- to low-end markets (RM500,00 to RM1mil) sales proved resilient.

Sales of high-end landed property and premium condominiums were weaker.

“In our view, all the developers will be able to sustain sales momentum from 2012 into 2013 as they shift to more affordable housing units,” said UBS.


http://biz.thestar.com.my/news/story.asp?f...65&sec=business

Stalenews on additional income stream, probably assembly for VW cars. But no details of how much profit can be obtained from assembly.

http://www.themalaysianinsider.com/busines...ival-says-dr-m/

This post has been edited by alenac: Feb 15 2013, 10:45 AM

DRB-Hicom buys CTRM from Minister of Finance Inc for RM298m

DRB-Hicom Bhd is buying a controlling 96.87% stake in aerospace component manufacturer Composites Technology Research Malaysia Sdn Bhd (CTRM) from the Minister of Finance Inc (MOF) for RM298.26 million cash.

In a statement to the exchange, DRB-Hicom said the proposed acquisition price comprises RM122.06 million for the stake and RM176.2 million worth of outstanding loan owed by CTRM to the Malaysian government.

Final gross dividend of 0.5 sen per share, less taxation of 25% and
a tax exempt dividend of 4.0 sen per share

EX-date 23/09/2013
Entitlement date 25/09/2013
Payment date 18/10/2013

Good dividend but too bad, timing not so good.