The all-new Mazda CX-30 has been officially launched at RM143k-173k, positioned between the CX-3 and CX-5 in terms of price and size, with sales targeted at c.100-200 units/month. Combined with CX-5 and CX-8, they are expected to make up to 70% of total BAUTO’s sales. The current version is CBU from Japan, while the CKD version is only viable for production when demand reaches 3k units/year. We reiterate our OP call with a TP of RM2.65 on the basis of above-industry profit margin and steady high dividend yield of c.7%.

The all-new Mazda CX-30 was officially launched at RM143k-173k, which places it between the CX-3 (RM128k) and CX-5 (RM133kRM182k) in terms of price and size, and targeted to hit sales of around 100-200 unit/month. Note that, 100 units is expected to be delivered in January 2020, while 125 units is on shipment, expected to arrive in 1st week of February. Combined with CX-5 and CX-8, they make up to 70% of our total sales expectation for the year. The current version is a CBU from Japan based on the Mazda 3 platform, while BAUTO noted that the CKD version is only viable for production if demand reaches 3k units/year. The CX-30 is expected to serve as an alternative choice for consumer opting between CX-5 and CX-3.The launching event was presented by Dato’ Sri Ben Yeoh (Executive Chairman), Dato Francis Lee (CEO), Dato Amer Hamzah (Prima Merdu Executive Chairman), Hiroshi Inoue-San (President, Mazda South East Asia Ltd), Naohito Saga-san (Mazda Japan Program Manager), and Susumu Niinai-San (Mazda Japan ASEAN Business Office general manager).

Mazda CX-30 specification. Pricing-wise, the 2.0G retails at RM143k on-the-road without insurance, the 2.0G High at RM164k, while the 1.8D High goes for RM173k, with 5-year/100,000 km manufacturerbacked warranty and a 5-year free maintenance package. Powering this car is a 2.0 litre Skyactiv-G power-train that delivers 162 HP at 6,000 rpm and 213 Nm of torque at 4,000 rpm, driving the front wheels via a 6-speed automatic gearbox. The range-topping 1.8 litre diesel produces 116 PS at 4,000 rpm and 270 Nm of torque from 1,600 to 2,700 rpm. Like the Mazda 3, the front gets MacPherson struts, and the rear a torsion beam setup, while the inside is almost identical to the Mazda 3 hatch. Other additions include: latest 8.8-inch full-colour infotainment display (support for Apple CarPlay and Android Auto), boot volume rated at 430 litres (1,432 litres with the rear seats folded), for safety, the 2.0 High variant gets seven airbags including driver’s knee airbags, hill start assist, emergency stop signal, ISOFIX child seat mounts, the usual three-lettered acronyms and several i-ActivSense advanced safety systems.

Exciting new launches starting 2QFY20. BAUTO had earlier launched the all-new Mazda 3 Sedan and Hatchback (CBU, July 2019), face-lifted and turbo variants of CX-5 (CKD, 22nd October), all-new CX- 8 (CKD, 13th November), and all-new CX-30 (CBU, 15th January 2020). BAUTO will introduce the face-lifted CX-3 (by 1QCY20), face-lifted Mazda 2 (1HCY20) and all-new Mazda MX-30 (based on demand, introduced at the Tokyo Motor Show, with estimated launch in CY2020/CY2021), and tentatively in two formats; (i) full EV, and (ii) range extender powered by a small rotary engine (necessary for other markets where daily commutes are longer or Malaysia which lacks EV infrastructure).

Maintain OUTPERFORM with unchanged TP of RM2.65 based on 13x CY20E EPS (at -0.5SD of its historical 3-year Fwd. PER mean). We like BAUTO for its: (i) expected earnings recovery from the stream of all-new models, (ii) superior margins above industry peers (average profit margin of c.9% vs. peers of c.2%), and (iii) steady dividend yield of c.7%. Risks to our call include: (i) lower-than-expected car sales volume, and (ii) unfavourable forex.

Source: Kenanga Research - 16 Jan 2020