Bermaz Auto Berhad

Absolutely. Despite facing competition from Chinese automobile brands, Mazda remains a significant player in the Malaysian market. While its sales have taken some hits, $BAUTO / 5248 (BERMAZ AUTO BERHAD) is strategically expanding its presence by introducing Chinese car brands like XPeng.

Malaysia's New Vehicle Sales Hit Record 816,747 Units in 2024

Malaysia's new vehicle sales, or total industry volume (TIV), have surpassed the 800,000-unit mark for the first time, soaring to all-time high of 816,747 units in 2024.
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December turned out to be the industry's highest monthly TIV ever, with 81,735 units sold as the 2024 total sales represents a two per cent increase compared to 799,821 units in 2023.
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Malaysian Automotive Association (MAA) president Mohd Shamsor Mohd Zain attributed the performance to Malaysia's resilient economy.
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"The country's gross domestic product (GDP) growth of 5.2 per cent in the first three quarters of 2024, compared to 3.8 per cent during the same period in 2023, along with the overnight policy rate remaining at 3.0 per cent since May 2023, created a conducive environment for vehicle loans.‌

"Additionally, a stable socio-political environment and a low unemployment rate of 3.1 per cent, the lowest in a decade, further boosted consumer confidence and purchasing power," he said at a press conference in conjunction with a memorandum of understanding signing ceremony between MAA and the Malaysia Automotive Robotics and IoT Institute here today.
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High backlog orders, particularly in the A segment, contributed to an increase in mational makes' market share, which accounted for 62 per cent of total TIV in 2024, Shamsor added.
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The surge in battery electric vehicle (BEV) sales, which rose by 45 per cent in 2024 due to tax incentives and the introduction of new models particularly from China, also played a crucial role.
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"Aggressive sales and promotional campaigns by original equipment manufacturers (OEMs) and distributors, as well as the launch of models featuring advanced technologies, resonated positively with the market," he said.

Shamsor said the automotive market and Malaysia's economy are expected to remain resilient this year.
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"GDP growth is forecast to range between 4.5 per cent and 5.5 per cent, while Bank Negara Malaysia is likely to maintain the OPR at 3.0 per cent, supporting sustained demand for vehicles. An increase in the minimum wage to RM1,700 next month and a salary revision of up to 15 per cent for government servants are expected to further boost vehicle purchases," he added.
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He said a stable labour market with low unemployment at 3.2 per cent will ensure income security, while the anticipated expiration of BEV tax exemptions at the end of 2025 could spur urgency in BEV purchases.
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"The introduction of new brands and models, along with continued promotional strategies, is likely to sustain market excitement," he said.
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Shamsor, however, is cautious about potential downside risks.
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"The US-China trade war could have mixed effects on Malaysia, particularly through reduced external trade and the relocation of Chinese plants. The mid-2025 petrol subsidy rationalisation exercise may impact demand for higher-engine capacity vehicles but could encourage EV sales. Furthermore, limited EV charging infrastructure in less developed states may hinder widespread EV adoption, affecting overall TIV growth," he said.

$BAUTO / 5248 (BERMAZ AUTO BERHAD) $DRBHCOM / 1619 (DRB-HICOM BERHAD)

Source: NSTP Business Time
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$BAUTO / 5248 (BERMAZ AUTO BERHAD)
Where is the bottom for BAUTO? RM1.28? RM1.10? Or RM1.00?

My preferred entry is 95sen. Well, I can wait & hope, right?

BAUTO sells pretty cool cars which Malaysians liek, so I don't think it'll make a loss in any near quarter.

But the sentiment is very bearish, which makes it hard to predict the bottom.

$BAUTO / 5248 (BERMAZ AUTO BERHAD)
One & a half year ago, I expected BAUTO to fall to RM1.80. It did not fall.
Now, BAUTO fell 30sen+ in the past week, in line with 2 consecutive weaker QR.

Institutional stocks have this disadvantage. Once the stock is no longer fund managers' favorite, it'll get discarded quickly.

$BAUTO / 5248 (BERMAZ AUTO BERHAD)
Research by TA

$BAUTO / 5248 (BERMAZ AUTO BERHAD)
Research by RHB

$BAUTO / 5248 (BERMAZ AUTO BERHAD)
Research by PBIV

$BAUTO / 5248 (BERMAZ AUTO BERHAD)
Research by MAYBANK

$BAUTO / 5248 (BERMAZ AUTO BERHAD)
Research by KENANGA

$BAUTO / 5248 (BERMAZ AUTO BERHAD)
Research by HLIB

$BAUTO / 5248 (BERMAZ AUTO BERHAD)
Research by MAYBANK

$BAUTO / 5248 (BERMAZ AUTO BERHAD)
Research Report by RHB

$BAUTO / 5248 (BERMAZ AUTO BERHAD)
Research Report by PBIV

$BAUTO / 5248 (BERMAZ AUTO BERHAD)

$BAUTO / 5248 (BERMAZ AUTO BERHAD)
Research by HLIB
HOLD– TP RM2.40

" Downward normalisation”

Reported core PATMI of RM69.5m for 1QFY25 (-23.6% QoQ; -31.5% YoY). The results were within our expectation (24.3%), but slightly below consensus (22.7%). Declared first interim dividend of 3.5 sen/share. Maintain HOLD with a lower TP of RM2.40 (from RM2.46) based on 10x CY25 P/E. We expect BAuto’s earnings to sustain in subsequent quarters, driven by the new Xpeng contribution and sustained Philippines operation. BAuto is also subscribing new shares in EPMB for an 11.54% stake, worth a total cash consideration RM19.8m. BAuto has a net cash of RM324.1m (27.7 sen/share).

Analyst:
Daniel Wong
kkwong@hlib.hongleong.com.my

$BAUTO / 5248 (BERMAZ AUTO BERHAD)
Research by CGS
ADD – TP RM3.10

" Proposed acquisition: 11.54% of EP Manufacturing”

■ 1QFY25 results were within our and Bloomberg consensus estimates.
■ We believe the proposed acquisition of a 11.54% stake in EP Manufacturing could pave the way for future partnerships.
■ Reiterate Add with TP of RM3.10, implying a 12.4x CY25F P/E, below its historical mean of 12.9x, with attractive dividend yield of 9%.
■ This note marks the transfer of coverage to Jacquelyn Yow

Analyst:
Jacquelyn YOW
jacquelyn.yow@cgsi.com

$BAUTO / 5248 (BERMAZ AUTO BERHAD)
Research by Kenanga
MARKET PERFORM– TP RM2.45

" Intensified Competition”

BAUTO’s 1QFY25 net profit met expectations, despite plunging 30% YoY as the sales volumes of Mazda and Kia vehicles fell on intense competition from Chinese-made vehicles, and on rising costs of its imported units on MYR’s weakening against the JPY. It has attractive new launches planned for FY25 to remain competitive. We maintain our forecasts, TP of RM2.45 and MARKET PERFORM call.

Analyst:
Teh Kian Yeong
tehky@kenanga.com.my

$BAUTO / 5248 (BERMAZ AUTO BERHAD)
Research by Public
Neutral – TP RM2.37

" In Line with Expectation”

Bermaz Auto Bhd’s (BAuto) 1QFY25 net profit fell by 29.9% YoY to RM70.2m, mainly attributable to a decline in sales volume from the Group’s Mazda and Kia operations in Malaysia. The results were in line with both our and consensus expectations, accounting for 23.1% and 21.2% of full-year estimates respectively. We keep our forecast unchanged and retain our Neutral rating on BAuto with an unchanged PE-based TP of RM2.80. A first interim dividend of 3.5 sen per share was declared for the quarter, translating to a payout ratio of 58.5% (1QFY24: 5.00 sen at 58.1% payout ratio).

Analyst:
Denny Oh
Oh.BoonYeow@publicinvestbank.com.my

$BAUTO / 5248 (BERMAZ AUTO BERHAD)
Research by Maybank
BUY – TP RM 3.04

" 1QFY25: Weak start but inline”

BAuto’s 1QFY25 core net profit (CNP) of MYR70m met expectations, achieving 20%/23% of ours/consensus FY25E. We anticipate stronger quarters ahead due to (i) seasonal factors, (ii) higher contribution from new MY launches like Kia Sportage, CX60, and XPeng G6, and (iii) increased associate contributions. Our forecasts, BUY and TP of MYR3.04, based on 10x FY25E PER (20% below the 5Y avg), are unchanged, pending further updates from its results briefing. The valuation discount is to factor in rising competition risks in the mass premium vehicle segment.

Analyst:
Loh Yan Jin
lohyanjin.loh@maybank-ib.com

$BAUTO / 5248 (BERMAZ AUTO BERHAD)
Research by RHB
BUY – TP RM 3.05

" Solid Dividend Play; Keep BUY”

Bermaz Auto’s 1QFY25 core earnings of MYR68m largely met ours and Street’s expectations. We think BAUTO is undervalued, trading at 8x CY25 P/E, below its historical mean of 9x. Not only that, its higher-thansector average c.10% yield remains as its plus point.

Analyst:
Syahril Hanafiah
syahril.hanafiah@rhbgroup.com

$BAUTO / 5248 (BERMAZ AUTO BERHAD)
Research by TA
HOLD – TPRM2.47

" Challenging Outlook”

 Bermaz Auto Bhd (BAuto) post a weaker 1QFY25 results, which came in within expectation. The core net profit decreased 32.7% YoY to RM68.2mn in tandem with a 22.3% drop in revenue.
 The decline was predominantly attributed to reduced sales volume due to stiff competition from other marque distributors.
 1QFY25 sales volume decreased by 23.0% YoY to 5,117 units (Malaysia: 4,555 units and Philippines: 562 units). Notably, the combined sales volume of CX-30 and CX5 CKD models accounted for approximately 74% of the total domestic sales volume in Malaysia.
 The board declared a first interim dividend of 3.5 sen/share for the quarter under review (vs. 1QFY24: 5.0 sen/share).

Analyst:
Angeline Chin
angelinechin@ta.com.my

$BAUTO / 5248 (BERMAZ AUTO BERHAD)
Research by MIDF
BUY – TP RM3.03

" Earnings Matched Expectations, No Surprises”

• 1QFY25 results on track with expectations
• BAuto takes 11.54% stake in EPMB to support expansion plans
• All-new Kia Sportage is the next key launch
• No change to earnings forecasts
• Maintain BUY with a revised TP of RM3.03

Analyst:
MIDF Research Team
research@midf.com.my

$BAUTO / 5248 (BERMAZ AUTO BERHAD)
Research by Kenanga
Market Perform - TP RM2.45

"Driving in the Xpeng G6 EV"

We attended BAUTO’s official launching of its new brand Xpeng G6 EV, which is the distributor’s first China EV model under its stable. Xpeng will take over the existing showroom in Glenmarie with expansion plans to Johor, Melaka and Negeri Sembilan by 4QCY24. G6 is competitively priced at RM165k-RM185k against its closest alternatives at that price range such as the Tesla Model Y, though the sales volumes will be insignificant during our forecast period. We maintain our forecasts, TP of RM2.45 and MARKET PERFORM call.

Analyst:
Wan Mustaqim Bin Wan Ab Aziz
wanmustaqim@kenanga.com.my

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - LEMBAGA TABUNG HAJI

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Company Face-Off: $SIME / 4197 (SIME DARBY BERHAD) vs $BAUTO / 5248 (BERMAZ AUTO BERHAD)

The Malaysian Automotive Association (MAA) has increased its car sales forecast for 2024 by 3.38% following strong sales in the first half. The total industry volume (TIV) is now expected to reach 765,000 units, up from the initial projection of 740,000 units. In this comparison, we take a closer look at two major foreign car retailers that might benefit from strong car sales: $SIME / 4197 (SIME DARBY BERHAD) and $BAUTO / 5248 (BERMAZ AUTO BERHAD).

Which company do you believe is the best among the two? Let us know in the comment section below!

AUTOS
$BAUTO / 5248 (BERMAZ AUTO BERHAD) $SIME / 4197 (SIME DARBY BERHAD)
Research by CGS
Neutral

“BEVs in Malaysia – a cost analysis”

Based on a sample size of 273 vehicles covering all major auto brands in Malaysia (Fig 1), we estimate that hybrid vehicles, such as hybrid electric vehicles (HEV) and plug-in hybrid electric vehicles (PHEV), are on average 14.4% and 22.9%, respectively, cheaper to own/use vs. petrol internal combustion engine (ICE) vehicles. Battery electric vehicles (BEV) are also 11.0% cheaper to own/use despite significant battery replacement costs. In our scenario analyses, where we vary charging costs and annual travel distances, our base case conclusion holds true, except if users travel significantly less distance each year. Our cost analysis employs an equivalent annual annuity (EAA)-to-vehicle price ratio and represents the percentage a buyer will spend on a vehicle each year relative to its initial cost price; this method allows us to account for different vehicle: 1) lifespans, and 2) prices.

Analyst(s):
Jeremy MOK
jeremy.mok@cgsi.com
Prem JEARAJASINGAM
prem.jearajasingam@cgsi.com
Jacquelyn YOW
jacquelyn.yow@cgsi.com

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - LEMBAGA TABUNG HAJI

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - TAN SRI DATO' SRI YEOH CHOON SAN

Changes in Director's Interest (Section 219 of CA 2016) - TAN SRI DATO' SRI YEOH CHOON SAN