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
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