AMRESEARCH is bullish on DRB-HICOM Bhd as the Proton electric vehicle (EV) development appears to be on track.
“Proton’s current fortunes rest on its recently-launched 1.3L and 1.6L compact car, the Iriz.
“We do not believe that the electric vehicles or hybrid models would make much of an impact and have not incorporated them into our projections.
“We maintain a ‘buy’ on DRB-HICOM, with an unchanged fair value of RM3.60 per share, a 15 per cent discount to our sum-of-parts value of RM4.25 per share,” said AmResearch in its note to investors yesterday.
AmResearch quoted a Business Times report that Proton appears to be making a strong headway in its development of an electric vehicle.
The report said that pictures and remarks were posted by International Trade and Industry Minister Datuk Seri Mustapa Mohamed on his Facebook page.
The minister had uploaded several pictures of a Proton Iriz EV prototype, taken during his recent working visit to LG Electronics’ resesearch and development centre in Incheon, Seoul.
Although the ministry had said that Proton will start selling electric vehicles this year, the introduction of the vehicle to the mass market is likely to occur only next year.