Bermaz Auto’s 2HFY20 to ride on Mazda CX-5, CX-8
KUALA LUMPUR: Analysts are feeling positive on Bermaz Auto Bhd’s (Bermaz Auto) prospects for the second half of financial year 2020 (2HFY20) as it is set to ride on the recently launched face-lifted or turbo Mazda CX-5 and the all-new Mazda CX-8.
The research arm of Kenanga Investment Bank Bhd (Kenanga Research), which noted that 2HFY20 could be better than 1HFY20 as Bermaz Auto recently launched its popular face-lifted and turbo variants of Mazda CX-5 on September 30, 2019 (completely knocked down or CKD), and all-new Mazda CX-8 on October 1, 2019 (CKD).
The two models are expected to drive 55 to 60 per cent of total local sales for Bermaz Auto as well as generate better export sales to the Philippines.
“The CX-5 is targeted to register circa 7,000 units per year (current booking at circa 500 units), while the CX-8 at circa 2,500 per year (current booking at circa 200 units),” Kenanga Research said.
To note, both models are locally assembled at the Inokom plant in Kulim, Kedah with tentative pricing of circa RM137,000 to RM180,000 for the face-lifted or turbo CX-5, while the CX-8 will cost 15 per cent to 20 per cent more than the CX-5 CKD at circa RM175,000 to RM205,000.
“On the other hand, Bermaz Auto and its partners are looking to invest up to RM200 million to expand 29 per cent-owned, Inokom’s plant production capacity from 50,000 to 80,000 units per annum by 2021 or 2022 to cater for the growing production demand for the allnew models.”
According to Kenanga Research, the final pricing for the 2019 CX-5 and all-new CX8 is expected to be unveiled within three weeks from the launching date pending pricing approval from the government agencies, which could drive most of the invoiced sales to 2H of the financial year.
As such, the research arm noted that the group’s second quarter of FY20 (2QFY20) (August-October quarter) sales could post weaker or flat sales.
“Nevertheless, overall results are expected to be cushioned by stronger associates as Bermaz Auto switched production to the all-new CX-5 and all-new CX-8.
“The Inokom plant has started production of its latest Mazda model in August 2019. Note that, the recent 1QFY20 results was affected by the weaker gross profit margin following the outgoing Mazda CX-5 run-out promotion as more sales incentives were given to clear inventories of this model.
“However, this was cushioned by stronger associates’ contribution due to the ramp-up in production for the outgoing Mazda CX5 volume (ready stock up to September 2019) after ceasing the outgoing CX-5 production in July 2019.”