(BAUTO MK/HOLD/RM2.02/Target: RM1.92)

BAuto’s 4QFY17 results were within our expectations. Despite the lackluster performance in FY17, we expect BAuto to make a comeback in FY18, driven by the all-new CX-5 and the ramp-up of exports in 2H17. The listing of its 60.4%-owned BAP in the Philippines is still ongoing. Given weak consumer sentiment and increased competition in the domestic market, we cut our FY18-19 net profit forecasts by 8% and 6.5%. Maintain HOLD. Target price: RM1.92. Entry price: RM1.80.

Source: UOB Kay Hian Research - 14 Jun 2017