Latest news with #BAuto
The Star
19-06-2025
- Automotive
- The Star
Softer Mazda sales weigh on Bermaz Auto
PETALING JAYA: The softening of Mazda sales amid stiff competition from the influx of Chinese marques is likely to weigh on the earnings of Bermaz Auto Bhd (BAuto) for its financial year 2026 ending April 30 (FY26). In a report, CGSI International Research (CGSI Research) said the aggressive expansion of Chinese automotive brands in Malaysia with their competitive pricing and technologically advanced models could erode Mazda's market share, further pressuring BAuto's margins 'Additionally, if macroeconomic conditions weaken, leading to reduced consumer purchasing power, spending on vehicles could decline. This would negatively affect BAuto's sales volume across all its brands and reduce earnings visibility,' the research house noted. For its fourth quarter ended April 30, 2025, the car distributor's core net profit fell 6% year-on-year (y-o-y) and 20% quarter-on-quarter to RM21.5mil due to weaker contributions from its associates. 'FY25 core net profit slumped 55% y-o-y to RM159mil, which is below 85% of our full-year estimate and 95% of Bloomberg consensus,' CGSI Research said. CGSI Research said it is downgrading BAuto's call from 'add' to 'hold' with a lower price-to-earnings-based target price of 84 sen. It also said it cut its forecast FY26 and FY27 earnings per share by 33% and 20%, respectively, to factor in the lower Mazda sales, lower earnings before interests and taxes due to the competitive environment as well as weaker earnings from the sales of spare parts. 'We revise our valuation methodology from the Gordon Growth Model to a price-to-earnings-based approach to better reflect evolving sector dynamics and investor preferences. 'Given structural shifts in the automotive industry, including margin pressure and changing consumer preference, we believe that a price-earnings framework offers a more relevant benchmark,' the research house said. However, on a brighter note, CGSI Research said it expects the lower forecasts for BAuto's earnings to be partially cushioned by its launch lineup, which includes the Mazda CX-60, CX-80, and three Deepal electric vehicles in the third quarter of this year, alongside its XPeng's G6 and X9 models that might provide a higher margin. 'We think there is potential for XPeng's contributions to grow considering that it only formed 13% of BAuto's Malaysia sales volume in over the last year,' it said. CGSI Research noted that BAuto's net cash position was RM244.7mil as of Apr 30. The research house added that there were both positives and negatives for the car distributor. It said upside included the easing of competition in the automotive sector and improving Mazda sales in Malaysia, while downside risks consisted of greater competition from Chinese brands in Malaysia, and a decline in consumer spending power. BAuto closed at 78 sen in yesterday's trading, giving it a market capitalisation of RM902.96mil.
The Star
19-06-2025
- Automotive
- The Star
Auto sector steady on firm demand, policy boost
BIMB Securities Research said the sector's near-term outlook remains balanced. PETALING JAYA: Malaysia's automotive sector continues to show resilience, with underlying demand holding firm and recent policy developments providing a short-term boost. Despite a monthly pickup in total industry volume (TIV), caution is advised amid external and competitive headwinds. According to BIMB Securities Research, the sector's near-term outlook remains balanced. Reiterating its 'neutral' call, the research house explained that its view on the automotive sector is supported by resilient underlying demand and favourable income policies. In a note, BIMB Securities Research highlighted expectations of new open market value duties potentially kicking in by 2026, which could act as a catalyst for early purchases and boost sales in the fourth quarter of 2025. TIV for May 2025 rose 12% month-on-month (m-o-m) to 68,007 units, driven by stronger passenger and commercial vehicle sales. Passenger vehicles climbed 12.1% m-o-m to 55,971 units, while commercial units increased by 15.2% to 5,250 units. However, year-to-date figures told a more muted story – sales slipped 5% to 316,737 units compared with the same period in 2024. BIMB Securities Research cautioned that several risks could dampen sentiment going forward. 'Key downside risks include global supply chain disruptions, softer consumer sentiment amid rising living costs, and competitive pressures from intensifying rivalry with Chinese original equipment manufacturers and the ongoing China electric vehicle (EV) price war,' it noted. Still, the research house believes current market jitters are not necessarily reflective of sector fundamentals. 'Although fundamentals remain robust, recent sell-offs appear largely sentiment-driven,' it noted. In terms of stock picks, BIMB Securities Research is reviewing its calls but has retained a 'neutral' stance on several key players. 'While our stock calls are currently under review, we maintain a 'hold' call on Sime Darby Bhd , MBM Resources Bhd and Bermaz Auto Bhd (BAuto),' the research house said. Its target price for Sime Darby stands at RM2.10, while that for MBM is at RM5.50 and 86 sen for BAuto. Statistics showed that national brands continued to dominate in May, with sales rising 11.7% m-o-m to 44,149 units. Perodua led with a 14.7% m-o-m gain, driven by strong demand for the Bezza and Myvi, while Proton saw a 4.9% uptick. Non-national marques also improved, up 13.6% m-o-m to 23,858 units. Toyota and Honda led the charge, but Mazda saw a 14% drop. EV momentum is gaining traction, though adoption remains well below national targets. 'Malaysia's EV registrations rose 44% m-o-m to 4,152 units in May 2025,' BIMB Securities Research noted, citing Road Transport Department data. Tesla's new Model Y facelift boosted sales 10-fold to 1,075 units, while BYD remained the top performer with 1,148 units. That said, with EV penetration at just 4.1%, the road to 20% by 2030 remains long, BIMB Securities Research noted.
The Star
13-06-2025
- Automotive
- The Star
Trading ideas: BAuto, George Kent, JcbNext, CHHB, Thong Guan, BLand, UEM Edgenta
KUALA LUMPUR: Companies that could be in the spotlight following recent announcements include Bermaz Auto Bhd 's (BAuto), George Kent (M) Bhd, JcbNext Bhd , Country Heights Holdings Bhd (CHHB), Thong Guan Industries Bhd , Berjaya Land Bhd (BLand) and UEM Edgenta Bhd . BAuto's net profit for the financial year ended April 30, 2025 (FY2025) dropped by over 55% to RM155.9mil from RM345.58mil a year earlier, as revenue fell to RM2.62bil from RM3.91bil, mainly due to lower sales volume from its Mazda and Kia domestic operations. George Kent has partnered with Shanghai-listed Qingdao Topscomm Communication Co Ltd (Topscomm) to develop Malaysia's first locally branded ultrasonic water meter. JcbNext has disposed of 647,846 shares (or 1.95%) in Taiwan-based 104 Corp for RM20.05mil in the open market of the Taiwan Stock Exchange. CHHB is disposing of its entire stake in its wholly-owned subsidiary, Versatile Champion Sdn Bhd (VCSB) to South Strategy International Sdn Bhd for RM600,000. Thong Guan has scrapped its plan to sell its F&B business to major shareholder Foremost Equals after failing to agree on a final sale price. BLand is disposing of its entire 80% stake in joint venture company, Berjaya-Handico12 Co Ltd (BHandico12), to Vietnam-based Dong Thinh Phat Land JSC and Green Hill Construction Investment JSC for RM201.96mil. UEM Edgenta has tied up with 21 Estates Group FZCO to establish a new joint venture company (JV) and expand its property management presence in Dubai, United Arab Emirates.
New Straits Times
13-06-2025
- Automotive
- New Straits Times
BAuto earnings miss prompts analysts to cut forecasts
KUALA LUMPUR: Analysts have revised down their net profit and earnings projections for Bermaz Auto Bhd (BAuto) following a weaker-than-expected financial performance. According to CIMB Securities, BAuto's results for the fourth quarter of financial year 2025 (4QFY25) fell short, achieving just 95 per cent of its own forecast and 94 per cent of consensus estimates. The miss was largely attributed to a softer contribution from associates than initially anticipated. As a result, CIMB Securities has revised its net profit projections for financial years 2026 and 2027 (FY26/FY27) downward by 21 to 29 per cent, citing lower associate earnings and tighter margins stemming from a projected decline in sales volume. The firm now anticipates Mazda sales volume to grow by a modest 5 per cent year-on-year (YoY) to 12,000 units in FY26, supported by the planned launch of the CX-60 and CX-80 models in the second half of calendar year 2025 (2HCY25). "However, the rebound could come at the expense of margins owing to increasing competition for its flagship CX-5 and CX-30 models in the RM100,000–200,000 segment," it said in a note. CIMB Securities noted that Bermaz Auto delivered 824 units of the XPeng G6 and X9 electric vehicle models in the first eight months of the financial year ending in April 2025. The firm expects a stronger contribution from XPeng in the financial year ending in April 2026, supported by a full-year sales impact and the potential introduction of new models. "We estimate XPeng could contribute between RM15 million and RM20 million to the group's pre-tax profit in FY26. "Beyond XPeng, BAuto is also looking to launch three new EV models under Deepal marques in 2HCY25: the Deepal S07, S05, and E07," it said. Meanwhile, Hong Leong Investment Bank (HLIB) said it has downgraded its earnings projections for FY26 and financial year 2027 (FY27) by 31.4 per cent, citing a deteriorating automotive outlook with lower anticipated sales and profit margins. HLIB noted that the launch of the XPeng G6 and X9 contributed to supporting the group's margins for the quarter, partly mitigating the softer performance from the Mazda and Kia brands. "However, competition in Malaysia is expected to intensify with the influx of Chinese original equipment manufacturers (OEMs) offering feature-rich models at competitive prices. "Similarly, operations in the Philippines continued to face mounting pressure from Chinese entrants," it added. HLIB has lowered its recommendation on BAuto to 'Sell' from 'Hold', cutting its target price to 78 sen from RM1.05. Despite the downgrade, the firm noted that BAuto continues to have a solid balance sheet, with a net cash position of RM207.2 million (equivalent to 17.8 sen per share) as of the end of FY25, which supports ongoing dividend distributions.
The Star
12-06-2025
- Automotive
- The Star
BAuto expects tough quarters moving forward
The group's fourth-quarter net profit saw a 77% drop year-on-year to RM21.2mil. PETALING JAYA: Bermaz Auto Bhd (BAuto) anticipates its performance for the financial year ending April 30, 2026, to be challenging. For the fourth quarter of financial year ended April 30, 2025 (4Q25), the group's net profit saw a 77% drop year-on-year (y-o-y) to RM21.2mil or earnings per share of 1.82 sen. Revenue on the other hand fell by 44% y-o-y to RM528.65mil largely due to drop in sales volume from its Mazda and Kia domestic operations as they were mainly impacted by the continuous influx of Chinese-made vehicles into the market, which are competitively priced. For the financial year ended April 30, 2025, the group's net profit declined by 55% y-o-y to RM155.91mil or earnings per share of 13.35 sen. Revenue also decreased by 33% y-o-y to RM2.6bil. The company said the automotive sector is expected to register lower growth due to factors such as inflationary pressures, weaker global growth from uncertainties in geopolitical conflicts and outcomes of negotiations on trade tariffs imposed by the United States, which will have an adverse impact on the overall local economy. Moreover, the continuous influx of Chinese marque vehicles had also impacted the sales of other marques in the country. The group said the launching of new or facelifts models of its existing and new vehicle marques are still very much dependent on the market sentiments and economic conditions then. BAuto also said according to the Malaysian Automotive Association, the total industry volume (TIV) in April 2025 of 60,527 units was 16.8% lower (12,177 units) than in March 2025 (72,704 units) as a result of the short working month in April 2025 due to the Hari Raya festive holidays and high festive deliveries in March 2025. The y-o-y TIV for the first four months of 2025 was 248,730 units, a decline of 14,320 units (down by 5.4%) compared to the same period last year of 263,050 units. Meanwhile, in the Philippines, the Department of Finance had reported in May 2025 that the country's gross domestic product (GDP) registered a growth rate of 5.4% for the first quarter of calendar year 2025 (4Q24: 5.3%). The Philippines economic outlook for 2025 is expected to remain positive with an expected GDP growth rate of around 6.0% in the coming quarters. BAuto said the board has approved and declared a fourth interim dividend of 1.50 sen single-tier dividend per share in respect of the financial year ended April 30, 2025 (previous year's corresponding quarter ended April 30, 2024: 4.75 sen single-tier dividend per share and a special dividend of 7.00 sen single-tier dividend per share) to be payable on Aug 5, 2025. The entitlement date has been fixed on July 18, 2025.
