CGS-CIMB Research maintained the ‘add’ proposal for DRB-Hicom Bhd with a target price of RM2.35 after predicting the sale of Proton X50 will drive the recovery plan of Proton Holdings Bhd owned by the company.
DRB-Hicom holds a 51% stake in Proton.
According to CGS-CIMB Research analyst Mohd Shanaz Noor Azam in a note yesterday, he expects the X50 to be a new growth driver for the national vehicle maker as the company is offering something in a new market.
He also predicted that the X50 would be a catalyst for Proton's export growth strategy after the company announced its plan to export the vehicle to the Thai market.
Proton launched the X50 through its social media channel yesterday with sales prices starting from RM79,200 for the Standard variation up to RM103,300 for the 1.5 TGDi Flagship variation.
"We feel the price is still in line with our expectations. Although the Flagship model is a bit higher in price compared to our forecast of RM100,000 but it still offers a discount of 10% or RM12,000 compared to the Honda HR-V which is currently the market leader for SUVs in segment B, "he said.
As many as 23,000 bookings have been received since September 20 and 70% of them are Flagship and Premium variations.
DRB-Hicom shares currently jumped two sen or 1.03% to RM1.97, making its market capitalization worth RM3.77 billion.
