MBMR Earnings Steady as Perodua Maintains Sales Momentum

MBM Resources Bhd (MBMR) is projected to post steady earnings in 2025, underpinned by strong and sustained demand for Perodua vehicles. This also comes despite a subdued start in the first quarter (Q1) compared to the year before.

Maybank Investment Bank also noted that Perodua remains on track to achieve its financial year 2025 (FY2025) sales target of 345,000 units, representing a modest 4% decline year-on-year.

The soft performance in the first quarter was attributed to seasonal factors and an excise duty issue, which was only resolved in Jan 2025.

Although the second quarter (Q2) may also see some softness due to planned plant shutdowns in April and June, Maybank highlights the resilience of demand, supported by a substantial backlog of over 80,000 units.

However, Maybank added that MBMR is not expected to play a role in Perodua’s upcoming electric vehicle (EV) launch slated for the fourth quarter. The initial phase of the EV launch will be managed directly by Perodua’s original equipment manufacturer (OEM) division.

Maybank Investment Bank maintained a neutral rating on MBMR, with a target price of RM5.63. Meanwhile, Hong Leong Investment Bank offered a more optimistic outlook, describing MBMR’s first-quarter performance as commendable.

The group recorded a profit after tax and minority interest of RM71.4 million — a 27.1% decline quarter-on-quarter and an 11.1% drop year-on-year — but still in line with market expectations.

“We expect MBMR to deliver sustainable quarterly earnings, bolstered by the strong ongoing demand for Perodua vehicles,” Hong Leong said. It also noted that Perodua’s sales target is supported by a robust order backlog of 97,000 units, with new orders continuing at a healthy pace.

Hong Leong maintained a positive call on MBMR, with an unchanged target price of RM7.10, based on a 15% discount to its sum-of-parts valuation of RM8.31.

MBMR, through its subsidiary DMM Sales Sdn Bhd, holds the position as the largest Perodua dealership in Malaysia — a strategic advantage as the national carmaker continues to lead the market.

Source: BERNAMA