Latest news with #RM159mil
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
06-05-2025
- Business
- The Star
UOB Malaysia FY24 showing improves
UOB Malaysia registered steady growth across all income streams. PETALING JAYA: UOB Malaysia has posted a 15.9% year-on-year increase in pre-tax profit to an all-time high of RM2.2bil on the back of 2.3% growth in net operating income to RM4.7bil for the financial year ended 2024 (FY24). It registered steady growth across all income streams, including net interest income, Islamic banking, net foreign exchange gains and fees and commissions. It also reported a decrease in total expenses by RM22mil due to disciplined cost management and a significant 52.1% decline in total allowances for expected credit losses to RM159mil on improved asset quality and lower provisions for both impaired and non-impaired assets. 'This achievement reflects the strength of our diversified business model, supported by prudent risk management, disciplined cost control and solid performance across our core businesses,' said UOB Malaysia chief executive officer Ng Wei Wei in a statement. Ng reported the bank's wholesale banking business delivered double-digit growth in both sustainable financing and trade loans. In 2024, UOB Malaysia's gross loans, advances and financing grew 2.1% to RM109.5bil.
The Star
06-05-2025
- Business
- The Star
UOB Malaysia posts record RM2.2bil pre-tax profit in FY24
KUALA LUMPUR: UOB Malaysia posted a 15.9% year-on-year (y-o-y) increase in pre-tax profit to an all-time high of RM2.2bil on the back of 2.3% growth in net operating income to RM4.7bil for the financial year ended 2024. According to the bank, it registered steady growth across all income streams, including net interest income, Islamic banking, net foreign exchange gains and fees and commissions. It also reported a decrease in total expenses to RM22mil due to disciplined cost management, and a significant 52.1% decline in total allowances for expected credit losses to RM159mil on improved asset quality and lower provisions for both impaired and non-impaired assets. "This achievement reflects the strength of our diversified business model, supported by prudent risk management, disciplined cost control and solid performance across our core businesses," said UOB Malaysia CEO Ng Wei Wei in a statement. Ng reported the bank's wholesale banking businessed delivered double-digit growth in both sustainable financing and trade loans. She added that global market income also grew strongly while the expanded retail franchise saw strong momentum in the credit card and wealth management business following the integration of Citigroup's consumer banking business. In 2024, UOB Malaysia's gross loans, advances and financing grew 2.1% to RM109.5bil, supported by steady growth across both its wholesale and retail segments. It also registered a higher current account-savings account (Casa) ratio of more than 44%.
