Here are the news extracted from Business Times, written by Francis Fernandez.
Deal with VW sends DRB-HICOM soaring
The stock closed 15 sen higher at RM1.93 yesterday, a level unseen since late October 2007
TAN Sri Syed Mokhtar Al Bukhary's DRB-HICOM Bhd (1619)yesterday closed at its highest level in 36 months, helped by its pact with Volkswagen AG, the world's second largest carmaker, to assemble VW cars here.
That DRB-HICOM is poised to start delivering tangible gains from its past asset acquisition and restructuring exercises also boosts the stock.
Syed Mokthar owns more than 55 per cent of DRB-HICOM.
He has injected some power and banking assets, since taking over the company in 2004 to add to the group's auto business and concession-based businesses such as those from Puspakom Sdn Bhd and Alam Flora Sdn Bhd.
The stock closed 15 sen higher at RM1.93 yesterday, a level unseen since late October 2007.
DRB-HICOM is scheduled to sign an agreement with VW in Kuala Lumpur today to assemble the German marque at its plant in Pekan, Pahang.
DRB-HICOM, the country's cheapest conglomorate, beat national carmaker Proton Holdings Bhd to get the VW contract.
The group assembles some auto models for Daimler AG's Mercedes-Benz, Honda Motor Co, Isuzu Motors Ltd and Suzuki Motor Corp as well as motorcycle engines for Honda, Suzuki and Yamaha Motor Co.
Its auto division contributed about 57 per cent of the group's revenue in the fiscal year ended March 31 2010. Revenue for the year just ended stood at RM6.31 billion, a record for the company since it started trading publicly in 1992.
Analysts said DRB-HICOM is also poised to register for the third time in a row a revenue of more than RM6 billion in the financial year ending March 31 2011.
In 2009 and 2008, DRB-HICOM's revenue stood at RM6.31 billion and RM6.1 billion respectively.
Last Thursday, Hwang-DBS said its maintaining its target price of RM3.55 a share on DRB-HICOM.
"The company is awaiting a conversion of letter of intent to letter of award for 257 AV 8x8 armoured vehicles which together with other works could amount to RM8 billion. We have yet to impute this into our earnings," Hwang-DBS said in the report last week.
Earlier this month, the Singapore firm had come out with its maiden research call on DRB-HICOM. To date, it is the only brokerage that covers the company.
Valuation wise, DRB-HICOM is currently trading at a single-tier price to earnings of about 5.72 times. Bursa Malaysia's composite index which tracks the 30 blue-chip stocks on the exchange, as at the close yesterday had a price to earnings of 17.12 times.
That DRB-HICOM is poised to start delivering tangible gains from its past asset acquisition and restructuring exercises also boosts the stock.
Syed Mokthar owns more than 55 per cent of DRB-HICOM.
He has injected some power and banking assets, since taking over the company in 2004 to add to the group's auto business and concession-based businesses such as those from Puspakom Sdn Bhd and Alam Flora Sdn Bhd.
The stock closed 15 sen higher at RM1.93 yesterday, a level unseen since late October 2007.
DRB-HICOM is scheduled to sign an agreement with VW in Kuala Lumpur today to assemble the German marque at its plant in Pekan, Pahang.
DRB-HICOM, the country's cheapest conglomorate, beat national carmaker Proton Holdings Bhd to get the VW contract.
The group assembles some auto models for Daimler AG's Mercedes-Benz, Honda Motor Co, Isuzu Motors Ltd and Suzuki Motor Corp as well as motorcycle engines for Honda, Suzuki and Yamaha Motor Co.
Its auto division contributed about 57 per cent of the group's revenue in the fiscal year ended March 31 2010. Revenue for the year just ended stood at RM6.31 billion, a record for the company since it started trading publicly in 1992.
Analysts said DRB-HICOM is also poised to register for the third time in a row a revenue of more than RM6 billion in the financial year ending March 31 2011.
In 2009 and 2008, DRB-HICOM's revenue stood at RM6.31 billion and RM6.1 billion respectively.
Last Thursday, Hwang-DBS said its maintaining its target price of RM3.55 a share on DRB-HICOM.
"The company is awaiting a conversion of letter of intent to letter of award for 257 AV 8x8 armoured vehicles which together with other works could amount to RM8 billion. We have yet to impute this into our earnings," Hwang-DBS said in the report last week.
Earlier this month, the Singapore firm had come out with its maiden research call on DRB-HICOM. To date, it is the only brokerage that covers the company.
Valuation wise, DRB-HICOM is currently trading at a single-tier price to earnings of about 5.72 times. Bursa Malaysia's composite index which tracks the 30 blue-chip stocks on the exchange, as at the close yesterday had a price to earnings of 17.12 times.
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