OSK Investment Research maintains "overweight" on the automotive sector which, it predicts, will continue to remain favourable until next year.
In a research note today, OSK picked Tan Chong Motors Holdings Bhd as the top sector given the stock's sound fundamentals and earnings forecast for the next three years.
OSK said Tan Chong would transform into a regional player given its growing exposure in the Indochina market.
"We also like UMW Holdings Bhd and Proton Holdings Bhd given their model line-ups over the immediate term, with the former seeing some recovery in its oil and gas division," OSK added.
The research company also maintained the total industry volume projection at 585,719 units for 2010 despite a strong 16.5 per cent growth, year to date, as it expected sales to weaken, going forward, due to seasonality.
"Despite the weaker quarter, we expect earnings to be cushioned by the strong ringgit which had reached a record 13-year high.
"The main beneficiaries of a stronger ringgit within our coverage are Tan Chong Motors and UMW Corporation Bhd," it said. - Bernama
In a research note today, OSK picked Tan Chong Motors Holdings Bhd as the top sector given the stock's sound fundamentals and earnings forecast for the next three years.
OSK said Tan Chong would transform into a regional player given its growing exposure in the Indochina market.
"We also like UMW Holdings Bhd and Proton Holdings Bhd given their model line-ups over the immediate term, with the former seeing some recovery in its oil and gas division," OSK added.
"Despite the weaker quarter, we expect earnings to be cushioned by the strong ringgit which had reached a record 13-year high.
"The main beneficiaries of a stronger ringgit within our coverage are Tan Chong Motors and UMW Corporation Bhd," it said. - Bernama
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