Analysts optimistic on Bermaz Auto in 1HFY19
KUCHING: Bermaz Auto Bhd’s ( BAuto) first half of the financial year 2019 (1HFY19) is expected to come within analysts’ expectations, buoyed by stronger sales from its Malaysian unit.
In a report, the research arm of Kenanga Investment Bank Bhd ( Kenanga Research) said: “We expect the second quarter of FY19 (2Q19) profit after tax, amortisation and minority interest ( PATAMI) of RM77.9 million (an increase of 55 per cent quarter- on- quarter, a 251 per cent increase year- on-year) buoyed by the all- time high for quarterly Malaysian sales in 2QFY19 at 4,802 units (up 44 per cent q- o- q, up 89 per cent y- o-y) mainly due to supply recovery of the all- new CX- 5 after a supply constraint (under 30 per cent- owned associates, Mazda Malaysia Sdn Bhd; MMSB) during the first two months of the zero- rated tax holiday.”
It noted that the 2QFY19 and 1HFY19 results are due to be released by mid- December 2018.
“Our assumpt ion for the 2QFY19 PATAMI is based on the vehicles average selling price for the past three quarters. This implied 1HFY19 PATAMI of RM128.2 million (up 202 per cent y- o-y) which is at circa 63 per cent of both our/consensus full-year estimates. We expect sales to normalize in 2HFY19 after the surge in delivery of the back-logged all- new CX- 5,” it opined.
On its out look, Kenanga Research noted that BAuto is expected maintain its zerorated pricing for vehicles booked before September 1, 2018 (new SST implementation) and expects better sales in FY19 mainly from the allnew Mazda CX- 5 CKD units ( backlogged booking of 4,000 units), while supported by its other variants.
“For 2018, BAuto recently launched the face-lifted Mazda CX- 3 and facelifted Mazda 6 (CBU), while for 2019, BAuto is expected to introduce the new generation of its f lagship models of Mazda 3 and all-new Mazda CX- 8 CKD in 2H19,” it added.
Me a nwh i l e , BAu t o ’ s Philippines operations still faces challenges ahead, Kenanga Research forecast.
“According to an announcement to Bursa Malaysia, BAuto has decided not to proceed with the proposed listing of the 60.4 per centowned, BAuto Philippines due to the current chal lenging situation in Philippines.”