Bermaz Auto (BAuto) reported lower 1QFY21 revenue and net profit, dropping by 16% and 82% YoY respectively. Net profit for 1QFY21 declined to RM9.2m from RM50.5m in 1QFY20, accounting for only 7% and 6% of our and consensus’ estimates respectively. This was mainly due to lower YoY sales volume of Mazda vehicles in both domestic (-18%) and Philippines’ (-66%) markets owing to the Covid-19 pandemic. Its associate, Mazda Malaysia Sdn Bhd (MMSB) also reported a loss of RM3.7m, dragging Group net margins to 2% (1QFY20: 9.7%). We adjust downward our earnings forecast for FY21-23F by c.11% to account for lower vehicle sales. Our PE-derived valuation is revised to RM1.46 (previously RM1.47), as we roll over to FY22F estimates. Since our last report, share price has declined by 15%, validating our Trading Sell call. Given a 4% upside to our current TP however, we upgrade our call to Neutral. Although we anticipate slower vehicle sales to continue in FY21, the economic stimulus packages introduced by the Malaysian Government should help to partly soften the impact of Covid-19. During the quarter, BAuto declared a first interim dividend of 0.50 sen (1QFY20: 3.25 sen).
Source: PublicInvest Research - 11 Sept 2020
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BAUTOCreated by PublicInvest | Aug 12, 2024
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2020-10-24 17:19