cwc1981

Yes Deepal got REEV version. At least this can compete with Haval H6

2 weeks ago

cwc1981

Just some thought since Mazda double digit model is going to battle BMW and Mercedez, maybe Bermaz can explore the possibility of filling the affordable range with ChangAn ICE cars. Then this counter will be worth to look into.

2 weeks ago

cwc1981

Mazda Japan maybe would not mind if Bermaz selling another brand as Bermaz is trying to fill up the gap left by Mazda as they're going to high end market

2 weeks ago

cwc1981

Is also a good timing for ChangAn to come to south east Asia as the perception for China Made car has been greatly improved due to the effort from Chery and Haval.

2 weeks ago

SinGor

X-Peng new EV (2025) is unbelievable fast and beautiful----Bauto really donT need Madza as core on 2025
onwards--With Anwar plan on Ron95, it is believe Bauto is serious trouble with gas power Car but management
fast turn-around on New core (EV) remarkable

2 weeks ago

cwc1981

Believe Mazda will continue to be well received in Malaysian market as their built quality and design is still above average compared to others Japanese car. The upcoming CX60 is superb but unfortunately the market share for Bermaz is shrinking due to fierce competitions from Chinese car and the more expensive pricing for it own new model.

2 weeks ago

Waller

Will hentam if Bauto falls through RM2

1 week ago

SinGor

2 weeks ago I ask for special Dividend---Dream comes truth ---7sen

1 week ago

cwc1981

Wondering will they declare 2nd quarter dividend on the 12th December? Since this is a special dividend pay in advance

1 week ago

limch

If another 3 sen dividend after QR announced minimum 10 sen can get in Dec? If EPS 6 sen like last QR and payout 100% total dividend become 13 sen?

1 week ago

dawchok

Very optimistic, I like it.

1 week ago

cwc1981

Indeed is a very attractive dividend from Bermaz. Hope their share price will appreciate also

1 week ago

M55555

If coming QR giving another dividend, share will not stay at this level . Who are those selling after 7 cents announcement ? What is their intention or do they knew somethings ? Selling below 2.10 only make sense for those bought over a year ago or just a month low ago.

1 week ago

cwc1981

I also want to know bro

1 week ago

cwc1981

Bermaz going to launch cx60 and cx80 in 2 more days at KLIMS. Both are really nice car but no longer at the affordable price like the cx5 and cx8. Hope it can sell well and grab some market share from BMW and Mercedez.

1 week ago

SinGor

BAUTO bought 33mil EP Manufacturing at 0.60----what Bauto intention? To manufacture EV after acquired
some "night classes " from EP

1 week ago

cwc1981

Oh this they already mentioned in their previous announcement. They intention to acquire 11.3 percent of EPMB new share to broaden their earning and to assemble new EV car in EPMB new factory in Melaka. This new factory also going to assemble Haval car

1 week ago

futuressh

Very very potential. Bermaz will never sit and rot. Must be planning something big.

1 week ago

limch

Bermaz has too much cash just like my other stock Kossan. If buy low and when above 60 sen make profit to sell like us stock traders why not?

SinGor

BAUTO bought 33mil EP Manufacturing at 0.60----what Bauto intention? To manufacture EV after acquired
some "night classes " from EP

15 hours ago

1 week ago

limch

Excess money placed in bank FD earn 2.7% in 1 year. So if can earn even few sen from stock trading is more than FD why not?

1 week ago

limch

Maybe management know EPMB potential plus already low price so Bermaz bought?

1 week ago

limch

Bermaz Auto - Bags Distributorship for Deepal
Date:
2024-11-26
Firm:
KENANGA
Stock:
BAUTO
Price Target:
2.45
Price Call:
BUY
Last Price:
2.09
Upside/Downside:
+0.36 (17.22%)
BAUTO has been awarded the distributorship of Deepal EV vehicles in Malaysia. Deepal will take over the vacated Peugeot showroom in Glenmarie, Shah Alam. The first model to be introduce by 1QCY25 will be the Deepal S05 (compact SUV, RM100k to RM150k) and Deepal S07 (mid-size SUV, RM150k to RM200k), both expected to be competitively priced against BYD Dolphin and BYD Atto 3. The sales volumes will be insignificant during our forecast period. Hence, we maintain our forecasts, TP of RM2.45 and OUTPERFORM call.

Deepal EV distributorship. BAUTO has been awarded the distributorship, sale of spare parts and provision of after-sales services of Deepal brand electric vehicles (EVs) in Malaysia by Chongqing Changan Automobile Co. Ltd., China. Changan Automobile is one of the four major Chinese automobile groups in China, with 40 years of car manufacturing experience, and has 13 manufacturing bases and 34 vehicle and new powertrain plants worldwide.

Changan Automobile is currently constructing its first overseas production facility (costing about THB 8.8b) in Rayong, Thailand under Phase 1, with completion expected by early 2025 and will consist of painting, assembly, engine assembly, and battery assembly lines with a yearly production capacity of up to 100,000 vehicles For Phase 2, Changan Automobile plans to invest up to THB 20b for the establishment of a new energy vehicle production facility with a yearly production capacity of up to 200,000 vehicles, to cater for the ASEAN market region as well as for the right-hand drive global market.

Changan sold 250,832 vehicles (+4%) to mainland China customers as of October 2024 on which 85,272 units are new energy vehicles (NEV).

The sales were also boosted by the newly launched Deepal S05 SUV, selling over 10,000 units within the first 10 days of its release. The company has a number of self-owned brands, including Changan, Nevo, Deepal, and Avatr, as well as joint venture brands with Ford and Mazda. Aside from Malaysia, the Chinese carmaker also plans to sell right-hand-drive (RHD) vehicles to customers in Indonesia, Australia, New Zealand, South Africa, and the UK.

Impact on earnings. We estimate that the earnings impact of the latest development is negligible at <1%. The new distributorship requires minimum capex (probably less than RM2m), no volume commitment and will take over the showroom vacated by Peugeot in Glenmarie, Shah Alam. Its other brand, Xpeng is already occupying its other showroom next to Mazda Glenmarie. Given the crowded EV market with various new EV launches, we believe that at most it will only be able to sell at least 500 CBU units during the first year of operation. The models to be introduced (most likely by 1QCY25) will be the Deepal S05 (compact SUV, RM100k to RM150k) and Deepal S07 (mid-size SUV, RM150k to RM200k) are expected to be competitively priced against BYD Dolphin and BYD Atto 3.

Forecasts. Maintained as the sales volumes will be insignificant during our forecast period.

Valuations. We also maintain our TP at RM2.45 based on 10x CY25F PER, at a 1x multiple discounts to the sector's average forward PER of 11x to reflect higher earnings risk for mid-market auto players on subsidy rationalisation which will hurt their target customers, i.e. the middle-income group, the most. There is no adjustment to our TP based on ESG given a 3-star rating as appraised by us (see Page 4).

Investment case. We continue to like BAUTO for: (i) its strong near-term earnings visibility backed by an order backlog of 2k units for Mazda, and Kia vehicles, (ii) its premium mid-market Mazda brand that offers superior margins, and (iii) its attractive dividend yield of about 8%. The share price has declined 11% YTD, which we believe has been factored in with BAUTO now trading at 8.5x based on our FY25F EPS, which is cheap versus historical average of 11x and auto sector's average forward PER of 11x. Maintain OUTPERFORM.

Source: Kenanga Research - 26 Nov 2024

1 week ago

limch

TP RM 2.45(by Kenanga) is most recent IB TP but RM 2.45 is lowest, can it be achieved?

1 week ago

cwc1981

Not sure whether this TP can be achieve because there are too many losing tickets from 2.67 till 2.10. Maybe lots of ppl wanted to cut loss or maybe cash out in this range

1 week ago

cwc1981

Is quite disappointed as the share price being selldown. It has been like this for 3 months plus

1 week ago

EngineeringProfit

Nice price. I am recollecting again.......hehe

1 week ago

cwc1981

Really koyak. Announced special dividend also din have positive impact. Next week 2nd quarter announcement really dare not put hope

1 week ago

SHOB

collect some at low

6 days ago

cwc1981

After seeing so many chinese car floated the market, strongly believe Bermaz really have to bring in ChangAn ICE vehicle to compete in order to maintain revenue and profit. Mazda new CX60 and CX80 maybe can give higher margins but doubt will have volume. Since now ChangAn is Bermaz partner in EV distribution

6 days ago

cwc1981

Sudden selldown again. Bad QR?

3 days ago

M55555

Tunggu QR and window dressing maybe

2 days ago

M55555

Now , launching new EV brands like launching new Smartphone brand.. Years ago , launching a new car brand ? You need to dream big.

2 days ago

cwc1981

No eye see. Sales dropped.

1 day ago

weixuan0325

Nowonder EPF and Tabung Haji stop acquired...tomorrow share price gonna be ugly...

1 day ago

Supernoob

unfortunately, the mgmt is sleeping with dino strategy for far too long. China cars and EV are seriously disrupting the car market now. BAUTO cannot rely on its old strategy and always look for "ayam' Mazda supporter to buy the dino car

1 day ago

M55555

Can said it is a bad result since it is still profit but a lowered performance and it was expected and DIV was also expected. Anyone bet on good result ? Nope .. so it would just be another day.

1 day ago

cwc1981

Looks like this FY need to bite the bullets. Hope next FY with all the cx60, cx80, xpeng, deepal s07 and kia sportage able to bring back the glory for Bermaz

1 day ago

weixuan0325

Waiting brand new CX-5...

1 day ago

Ravetidus

The next Tan Chong?

1 day ago

Greg14

yearly low already, time to collect for DIV~

1 day ago

troy88

Desperately need new models to come. Luckily sold off on the high earlier this year. May come back when outlook improves later..

1 day ago

EatCoconutCanWin

gogo TMD

1 day ago

KopitiamKaki

Just bought BAUTO a couple of days ago. Today it crashes. :(

1 day ago

Greg14

buy more average down your price ;)

1 day ago

cwc1981

This should be the rock bottom for Bermaz. 3rd quarter should be better due to year end promo and seasonal factor

1 day ago

neohts

Too many cheap China Car.
Chery car is bigger and cheaper than Mazda.

23 hours ago

cwc1981

Agreed bro. Current Bermaz poor performance is due chinese cars and ageing of its own models. But believe going forward should be better for Bermaz as new model coming in next year. Mazda car is somehow on its own league. Believe potential owner doesn't mind to pay slight premium for Mazda qualities and Kodo design philosophy.

23 hours ago

Greg14

yea agreed bro Mazda a bit diff in its own league, next year CX-60 if priced competitively alot takers one. China car wise, peng leng jeng but reliability is an issue. Even Bermaz self also have a little market share in China car market as they have the Xpeng. Just unsure the new dividend tax policy whether will affect its track record of giving DIV as frequent..

21 hours ago

cwc1981

Frankly speaking the current quarter performance is a good indicator that show Bermaz rock bottom performance and the wave of chinese car and current car market appetite for gadgets packed car but once everything been normalise and wave is receded bermaz should see improvement in profit. Even Proton CEO mentioned there are too many chinese car here and he forsee some maybe out of existence in 2 or 3 years time.

21 hours ago

cwc1981

As for the last 2 quarter performance, can expect a stagnant profit similar to 2nd quarter or maybe slight improvement due to seasonal sales. So maybe for those who trust in Bermaz need to bite the bullet for this FY24/25 as significant improvement only come in FY25/26

21 hours ago