Betamek set to ride on Perodua’s strong sales: HLIB
10 Apr 2023
Electronic manufacturing services (EMS) provider for automotive industry, Betamek Bhd’s earnings are expected to align with Perodua’s strong sales performance, being a key supplier of the car manufacturer.
In a note today, Hong Leong Investment Bank (HLIB) said Perodua has recorded sales of 21,400 units in January 2023, with a market share of 43.4%.
“Perodua’s management has recently disclosed an ambitious sales target of 314,000 units for 2023, which implies a year-on-year growth of 11.3% after achieving a record high of 282,000 units in 2022.
“This impressive target is backed by healthy order backlogs of 220,000 units and an increase in planned production for the year to 330,00 units,“ it said.
HLIB said Perodua recently launched the all-new Axia replacement model priced from RM38,600 to RM49,500 in mid-February with over 20,100 bookings recorded.
“We expect another two models update for 2023 and a new hybrid electrical vehicle in 2024. These further augment Betamek’s sales outlook, given its track record in supplying to every Perodua model,“ it said.
“Betamek is building a strong base at 42 sen to 49 sen levels, with indicators on the mend. A successful breakout above 50 sen immediate resistance may indicate a potential uptrend for the stock, potentially revisit 52 sen, 55 sen and 57 sen levels.”
Starting from supplying vehicle audio systems for Perodua Kancil, Betamek has grown over the years to become a key supplier to Perodua, supplying 63.2 per cent of the volume of Perodua vehicles sold in 2021.
Betamek manufactures a range of vehicle audio products and components, such as infotainment systems, audio-video accessories, air conditioning control panels, universal serial bus chargers, mirror switches, switch clusters, and power sockets for automotive marques in Malaysia and Indonesia (through Perodua).