A few days ago, Bermaz Auto Berhad (BAUTO, 5248) announced impressive financial results, with revenue surpassing the RM1 billion mark again, setting a new historical record. Without further ado, let's delve into the latest performance of this automotive dealer, representing the MAZDA, PEUGEOT, and KIA brands.

Revenue Comparison (YoY +51.95%, QoQ +1.57%)

For the first quarter ending on July 31, 2023 (Q1 FY2024), BAUTO achieved approximately RM1,089.27 million in revenue, marking a substantial increase of about 51.95% compared to approximately RM716.86 million in the same period last year.

(Note: BAUTO's fiscal year ends on April 30 each year.)

The company's revenue growth can be attributed primarily to increased sales of MAZDA brand vehicles in Malaysia, particularly the locally assembled ("CKD") CX-30 model that was introduced in March this year. Additionally, the increased delivery of backorders for the MAZDA 3 model contributed to this quarter's revenue.

According to analysts' survey, automotive sales for this quarter increased year-on-year by approximately 53.50%, reaching 6,648 units. Among these figures, CKD (Completely Knocked Down) models of MAZDA contributed 3,389 units to this robust sales performance, while CBU (Completely Built Up) MAZDA models added 1,609 units to the total. KIA automobiles achieved sales of 606 units during this period, while Peugeot's sales figures stood at 313 units.

In terms of geographical distribution, out of the RM1.089.27 billion in revenue, approximately RM988.93 million came from the Malaysian market. The remaining RM100.34 million in revenue was generated from the Philippines market.

Compared to the previous quarter, the company's revenue also increased by approximately RM16.88 million or 1.57%. This growth can be attributed to the continued increase in MAZDA car sales in Malaysia.

Net Profit Comparison (YoY +99.80%, QoQ -0.39%)

Driven by strong MAZDA car sales, BAUTO's net profit increased significantly year-on-year by approximately RM50.06 million or 99.80%, reaching around RM100.22 million.

However, compared to the previous quarter, the company's net profit saw a slight decrease of approximately 0.39%. According to the quarterly report, this was due to lower forex gains this quarter, decreasing by approximately 28.99%. Nevertheless, if we exclude forex gains, the company's pre-tax profit is approximately RM140.66 million, marking an increase of about 0.81% compared to the previous quarter.

It's worth mentioning that the company announced the distribution of a first interim dividend of RM 0.0500 for this quarter, with an ex-dividend date of October 19 and a payment date of November 3, 2023, for shareholders.

Outlook

Considering the broader economic landscape, factors such as inflationary pressures, geopolitical tensions, and a slowdown in global economic growth are expected to have adverse effects.

Nonetheless, the automotive industry is still expected to grow, albeit at a slower pace. Therefore, the company plans to introduce new or updated versions of Mazda, PEUGEOT, and KIA models, depending on market sentiment and economic conditions.

In conclusion, the management remains confident about the company's future growth prospects. Now, the question for readers is whether the reference price of RM 2.300, with a P/E ratio of 7.60 and a dividend yield of 9.57%, represents an attractive investment opportunity.