Investors tracking MCE Holdings Bhd (MCEHLDG) are weighing two forces moving in opposite directions as of 19 December 2025: near-term uncertainty around Perodua’s new EV battery leasing model—a structure still unfamiliar to many Malaysian buyers—versus a widening pipeline of new revenue streams, fresh model launches, and capacity expansion that analysts believe could lift earnings into 2026 and beyond. [1]
At the centre of the debate is MCE’s growing role in Malaysia’s automotive electronics supply chain, including its entry into Perodua’s EV platform, alongside a multi-pronged push into exports and higher-value products supported by the upcoming MCE Auto Hub in Serendah. [2]
What’s driving the conversation on 19 December: battery leasing and Perodua EV take-up
A key market development on 19 December 2025 was a research-driven focus on how quickly buyers will embrace battery leasing—a model meant to lower the upfront vehicle price and separate battery degradation risk from car ownership. Hong Leong Investment Bank (HLIB) noted that because the structure is relatively new locally, initial buyer hesitation is possible while Perodua educates consumers on how the programme works and what the long-term costs and benefits look like. [3]
HLIB also pointed out that MCE’s share price had pulled back from RM1.91 (21 Oct 2025) to around RM1.56, reflecting market caution over early EV adoption dynamics. [4]
Still, the same note framed MCE’s inclusion in Perodua’s EV platform as a strategic milestone—the kind of supplier “credential” that can unlock future EV-related programme wins with Perodua and potentially other OEMs. [5]
Perodua responds with wider access and clearer terms for QV-E bookings
Also on 19 December 2025, Perodua moved to broaden access and simplify participation for potential EV customers—steps that could help reduce early friction around the new ownership structure.
According to a report published that evening, Perodua increased the number of sales outlets collecting bookings for the QV-E from nine to 34 across Peninsular Malaysia, citing healthy interest and the need to expand test drive and reservation touchpoints. [6]
Perodua also introduced a more familiar booking pathway alongside its app-based approach, adding manual bookings after feedback from customers who wanted a “normal” option beyond the super-app route. [7]
On the battery lease itself, the same report outlined the Battery-as-a-Service (BaaS) pricing and structure: RM275 per month for 108 months (nine years), with the monthly price capped to protect customers from future price hikes, plus battery maintenance handled under the package and administrative support for transferring the subscription if the car is sold. [8]
A separate update on the same date similarly highlighted that the battery subscription is RM275/month “all-in” (including tax) for 108 months, reinforcing how Perodua is positioning the pricing as predictable and easy to understand. [9]
For MCE investors, these consumer-facing moves matter because they shape the pace of Perodua EV deliveries, which in turn influences the ramp-up curve for suppliers connected to the new platform. [10]
MCE’s latest quarter: softer sales and higher costs, but management points to the next phase
While the EV narrative grabbed attention on 19 December, MCE’s fundamentals in the background were anchored by its most recently reported quarterly performance.
MCE posted a 13.62% year-on-year decline in net profit to RM4.19 million for the three months ended 31 October 2025 (1QFY2026), alongside revenue that slipped 4.59% to RM39.52 million. The company attributed the revenue softness to reduced orders linked to a major customer’s plant relocation and the end of production for a legacy vehicle model. [11]
The same update also tied a portion of earnings pressure to higher staff and administrative costs connected to recruitment and preparatory activities ahead of the upcoming MCE Auto Hub commissioning in Serendah. [12]
Importantly for the longer-term thesis, MCE’s leadership positioned these costs as groundwork for expansion, pointing to new export initiatives and the role of the Auto Hub in enabling advanced automotive electronics production to meet stringent standards. [13]
Why analysts still see stronger quarters ahead: new programmes, exports, and non-auto growth
Despite near-term uncertainty around EV consumer behaviour, the investment case being built around MCE is increasingly about multiple growth lanes—not just one vehicle platform.
HLIB maintained a BUY stance with a target price of RM2.38, and it expects sequentially stronger quarters driven by new revenue streams and ramp-up contributions from Dorman (US customer) as well as the non-auto segment. [14]
The research view ties the expected pickup to three immediate operational catalysts:
- New vehicle programmes already launched by customers
HLIB flagged momentum from supply linked to the A-segment Proton Saga AMA01 (launched in November) and two launches in December: Perodua’s EV QV-E and the B-segment Perodua D66B. [15] - Exports to the United States
MCE has said exports of automotive parts to the United States have recently commenced, marking entry into an international aftermarket segment described as high-potential. [16] - Capacity and capability uplift via the Serendah Auto Hub
The MCE Auto Hub is scheduled for commissioning in 2HFY2026, and management expects the facility to help deliver higher-value, more technologically advanced products into both domestic and international markets—supporting a move up the value chain. [17]
Together, these are designed to reduce dependence on any single model cycle and cushion the impact of temporary order changes—like those caused by customer plant relocations or programme sunsets. [18]
The bigger strategic push: ADAS, smart cockpit partnerships, and local semiconductors
Beyond near-term model launches, MCE is also tying its growth narrative to next-generation automotive electronics—particularly as OEMs compete on software features and safety systems.
Recent updates highlighted that MCE formalised a joint venture with Nanjing Chuhang Technology to develop mmWave radar for ADAS applications, and signed a memorandum with ADAYO focused on smart cockpit and driving solutions. [19]
MCE is also described as collaborating with MIDA on integrating locally designed semiconductor ICs, a pathway that could open further opportunities as localisation pressures rise and supply chains rebalance. [20]
These initiatives align with what HLIB framed as structural tailwinds: accelerating localisation and the “China+1” supply-chain shift, trends that can benefit established local engineering-led suppliers as OEMs diversify sourcing and raise localisation content. [21]
Valuation focus on 19 December: revisions, target price, and what the “pullback” means
On 19 December 2025, the tone of the market wasn’t purely bullish—HLIB revised down its earnings forecasts for FY26 and FY27 by 1.7% and 0.3%, respectively, while trimming the target price slightly to RM2.38 from RM2.40 (based on a 15x P/E applied to partially diluted revised EPS assumptions by mid-FY27). [22]
But HLIB still framed the recent share price retracement as an entry point for investors who want exposure to an auto-electronics supplier moving up the value chain. [23]
Another notable element supporting the longer-term investment narrative is balance sheet flexibility: MCE has been described as well-capitalised with net cash of RM79.1 million (52.6 sen/share), which analysts argue provides room for growth investments. [24]
Why Perodua’s battery model matters to suppliers—not just buyers
Battery leasing is often discussed as a consumer affordability tool, but the structure can also reshape supplier expectations in the early phase of a new EV rollout.
Perodua’s own positioning has been that separating battery ownership from the car helps reduce anxiety and supports battery assurance. In its launch communication, Perodua described BaaS as a way to sell the car body separately from the battery, and linked the concept to peace-of-mind assurances for customers. [25]
From a supplier’s perspective, however, any new ownership model has an adoption curve. Even if the monthly price is simple (RM275/month all-in), customers may take time to understand resale mechanics, subscription transfer processes, and total cost over time—exactly the “education period” HLIB highlighted as a short-term risk to booking momentum. [26]
That’s why Perodua’s moves on 19 December—expanding booking outlets, enabling manual bookings, and pushing simplified explanations—are being watched closely: they’re early indicators of how quickly the EV programme could scale. [27]
What to watch next for MCEHLDG after 19 December 2025
For readers following MCE Holdings as a corporate story and as a Bursa-listed stock, the next few checkpoints are likely to be less about headlines and more about measurable execution:
- Evidence of QV-E adoption stabilising as consumers become comfortable with battery leasing and transfer mechanics (a key near-term sentiment driver). [28]
- Sequential revenue and margin traction in upcoming quarters as new model programmes contribute and the Dorman/non-auto ramps mature. [29]
- Serendah Auto Hub progress and clarity on commissioning milestones, since staffing and preparatory costs have already weighed on recent results. [30]
- Export contribution visibility, particularly in the US aftermarket segment, which can diversify earnings away from domestic model cycles. [31]
- Follow-through on ADAS and smart cockpit partnerships, which could help MCE sustain a higher-value product mix over multiple programme cycles. [32]
Bottom line
As of 19 December 2025, MCE Holdings is at a classic transition point: the company has reported a softer quarter influenced by programme timing and expansion-related costs, yet it is simultaneously positioning itself for a stronger run-rate through new vehicle launches, exports, and the commissioning of a purpose-built facility for advanced automotive electronics. [33]
The near-term overhang is psychological as much as operational—how fast Malaysian buyers accept Perodua’s battery leasing approach and how quickly booking momentum converts into deliveries. But the counterweight is that MCE’s growth story is becoming broader than any single model, anchored by expansion plans and a push into higher-tech automotive electronics. [34]
References
1. www.nst.com.my, 2. www.nst.com.my, 3. www.nst.com.my, 4. www.nst.com.my, 5. www.nst.com.my, 6. paultan.org, 7. paultan.org, 8. paultan.org, 9. soyacincau.com, 10. www.nst.com.my, 11. theedgemalaysia.com, 12. theedgemalaysia.com, 13. theedgemalaysia.com, 14. www.businesstoday.com.my, 15. www.businesstoday.com.my, 16. theedgemalaysia.com, 17. theedgemalaysia.com, 18. theedgemalaysia.com, 19. www.businesstoday.com.my, 20. www.businesstoday.com.my, 21. www.nst.com.my, 22. www.nst.com.my, 23. www.nst.com.my, 24. www.businesstoday.com.my, 25. www.perodua.com.my, 26. www.nst.com.my, 27. paultan.org, 28. www.nst.com.my, 29. www.businesstoday.com.my, 30. theedgemalaysia.com, 31. theedgemalaysia.com, 32. www.businesstoday.com.my, 33. theedgemalaysia.com, 34. www.nst.com.my
