Company Coverage
Bermaz Auto (BAUTO MK): 1QFY27: Above Expectations; New CX-5 To Support Sales Momentum
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
RM0.93
RM1.30
39.8%
RM1.14
Analyst
Highlights
- Bermaz posted above-expectations results, with core net profit of RM41.8m in 1QFY27, driven by sustained healthy margin and higher vehicles sales.
- We expect Mazda’s sales to remain resilient, with the upcoming 3rd-gen CX-5 launch to support volumes despite normalising sales of Mazda 3.
- Raise our earnings forecasts by 15%/10% for FY27/28 respectively to account for a sustained recovery in margins.
- Maintain BUY with a higher target price of RM1.30, based on 10.5x FY27F PE.
Analysis
- Above expectations. Bermaz Auto’s (Bermaz) 1QFY27 core net profit of RM41.8m came in above our expectation, accounting for 32%/33% of our and consensus full-year forecasts. The outperformance was driven by stronger-than-expected margin and an improved contribution from Kia Malaysia (associate), which turned profitable this quarter compared with a RM2.0m loss in 4QFY26.
- Bermaz declared a first dividend interim dividend of 2 sen (1QFY26: 0.75 sen), on track to meet our FY27 DPS forecast of 8 sen.
Highlights
- Bermaz posted above-expectations results, with core net profit of RM41.8m in 1QFY27, driven by sustained healthy margin and higher vehicles sales.
- We expect Mazda’s sales to remain resilient, with the upcoming 3rd-gen CX-5 launch to support volumes despite normalising sales of Mazda 3.
- Raise our earnings forecasts by 15%/10% for FY27/28 respectively to account for a sustained recovery in margins.
- Maintain BUY with a higher target price of RM1.30, based on 10.5x FY27F PE.
Analysis
- Above expectations. Bermaz Auto’s (Bermaz) 1QFY27 core net profit of RM41.8m came in above our expectation, accounting for 32%/33% of our and consensus full-year forecasts. The outperformance was driven by stronger-than-expected margin and an improved contribution from Kia Malaysia (associate), which turned profitable this quarter compared with a RM2.0m loss in 4QFY26.
- Bermaz declared a first dividend interim dividend of 2 sen (1QFY26: 0.75 sen), on track to meet our FY27 DPS forecast of 8 sen.
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
RM0.93
RM1.30
39.8%
RM1.14
Analyst
IMPORTANT NOTICE - DISCLOSURES AND DISCLAIMERS
This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at this link, which are incorporated by reference into this report. In particular, this report is intended for general circulation and informational purposes only and does not constitute personal investment advice or a recommendation to buy or sell any investment product or security. You should independently evaluate the information and, where necessary, seek advice from a qualified financial adviser regarding the suitability of any investment. Analyst certifications required under applicable regulations, including SEC Regulation AC (where relevant), are included in this report. By accessing, receiving or using this report, you acknowledge that you have read, understood and agreed to be bound by the Disclosures / Disclaimers, as may be amended, supplemented or updated from time to time.
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