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.

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

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

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

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

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