UMW outlook seen remaining challenging

The group’s auto pre-tax margins are expected to be weaker at 5% to 6% in 2020 to 2022E in view of likely softer automotive sales and added depreciation cost with the completion of its Bukit Raja plant.

PETALING JAYA: The outlook remains challenging for UMW Holdings Bhd due to the impact of the worsening coronavirus disease (Covid-19).

Affin Hwang Capital Research said it remains cautious on UMW’s outlook as the pandemic will likely reduce demand for its auto and equipment segments.