KUALA LUMPUR (April 17): DRB-Hicom Bhd’s (KL:DRBHCOM) outlook for the financial year ending Dec 31, 2026 (FY2026) remains mixed, with strong sales momentum from Proton and stable contributions from aerospace and banking expected to be partially offset by structural challenges in its postal division, according to CIMB Securities.
The research house highlighted that Proton Holdings Bhd continues to be the group’s key growth engine, with the delivery of 49,140 units in the first quarter ended March 31, 2026, representing 24.6% of its full-year target. As for exports, Proton is aiming for 100,000 units or 30% of total volume by 2030.
“For 2026, Proton is targeting 200,000 units (+26% year-on-year), underpinned by a refreshed model line-up on the Advanced Modular Architecture (AMA) platform, continued roll-out of EV and PHEV offerings”, it added in a note on Friday, referring to electric vehicles and plugged-in hybrids.
However, its subsidiary, Pos Malaysia Bhd (KL:POS) continues to weigh on the group’s performance, with revenue declining to RM2.2 billion in 2021 to RM1.8 billion in 2025.
The key challenge stems from its Universal Service Obligation (USO), which serves more than 11 million addresses with 3,080 touch points, and is also due to structural mail decline, rising operating costs, and intense competition in the parcel delivery market.
Moving on, CIMB Securities noted that DRB-Hicom is working with regulators on reforms, including fair compensation for its USO, curbing anti-competitive practices, restoring pricing discipline, optimising delivery frequency, and network rationalisation.
Meanwhile, on the positive side, the group’s aerospace arm, Composites Technology Research Malaysia Sdn Bhd (CTRM), is set to benefit from the integration of Spirit AeroSystems Malaysia, which is expected to lift pro forma revenue above RM1.4 billion.
Other than that, DRB-Hicom’s 70%-owned Bank Muamalat remains a resilient earnings anchor due to its revenue doubling to RM2.2 billion in 2025 from RM1.1 billion in 2021, with the group exploring a potential listing to pare down its stake in line with regulatory requirements.
There are now one ‘buy’, one ‘hold’, and two ‘sell’ calls on the stock, and the average target price is 89 sen across four research houses, according to Bloomberg.
CIMB Securities decided to maintain a ‘neutral’ rating on DRB-Hicom, citing the balance between Proton’s growth trajectory and the ongoing drag from postal services. The group was last traded at RM1.20 at the time of writing on Friday, giving it a market capitalisation of RM2.32 billion.