Proton expected to post strong Q4 results

Results expected to come out on 19 MAY 2010. Me waiting to sell proton cb and cc.


Proton Holdings Bhd is expected to post strong results for its fourth quarter (Q4) this year on the back of strong vehicle sales of 40,132 units on the domestic side, OSK Research said today. The national carmaker's performance too is expected to be sustained by an increased contribution from the export markets, due to the launch of the Exora, the research house said in its note here. "We continue to see Proton's total sales being sustained going forward, backed by a resilient demand for the Saga, Exora and Persona. 

This is together with the upcoming launch of its Waja and Perdana line-up sometime late in the second-half this year. "It is also well supported by growing export sales and we are forecasting a total volume of between 199,000 and 223,000 units for financial year 2011 and 2012 respectively," it added. 

Besides that, it said recent talks of Proton's strategic partnership with Volkswagen and the possibility of it carrying out a contract assembly of the German carmaker's Passat model as a Perdana replacement, could lend a hand to Proton. "We looked at all the possible scenarios that may emerge and noted that the upcoming Q4 results could come within our forecast," OSK Research explained. Therefore, it has maintained a "buy" on Proton, with a target price of RM5.90. Proton closed trading today at RM4.99, up 19 sen from yesterday. However, it said that the forecast remains unchanged for now until it could be confirmed that the Passat would be the Perdana's rebadged model and when Proton unveils its new strategic partnership.-- Bernama