Take a look at the report card for the Malaysian economy 1st half of this year.
The outlook is still positive but we aren’t that optimistic towards this sector for 2H 2017. From the lack of new models and only the arrival of face-listed ones, we see that this segment still lacks catalyst for the time being.
Unlike Q4 of 2014 where most preferred brands such as Honda, Toyota and Perodua released multiple new models and big cuts to push out old models. It is hard for that period to come back which makes us ponder when should we buy undervalued automotive counters.
Firms are posting Mid Year Outlook and here is one from Blackrock. As usual, the recommendation is to keep your heads held high and look into higher equity markets with a stronger economic growth.
Yesterday we posted Maybank’s outlook here.
This was published by CIMB today.