UMW, previously our top pick for the sector, is now our TOP SELL (FV RM6.41) as earnings are likely to disappoint. We have no BUYs on autos except for autoparts counters New Hoong Fatt, Delloyd Ventures and EPMB given their diversified earnings base. Due to tight liquidity, we refrain from advocating these three counters as buys in the auto sector. Upon re-entry, once the timing is right, we advise investors to position themselves in Tan Chong given its upcoming regional expansion play come FY12.
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