Bermaz Auto reports more than two-fold profit jump in 2Q


PETALING JAYA: Bermaz Auto Bhd (BAuto) believes the gradual resumption of production by semiconductor manufacturers locally and overseas will help to ease the microchips and components shortages situation.

In a filing with Bursa Malaysia yesterday, the group said the automotive sector continues to face stiff competition from non-traditional vendors in the electronics, electrical and information technology-related industries for the supply of microchips and components.

“This had compounded the microchips and components shortages situation and resulted in delays in the delivery of vehicles.”

For its second quarter ended Oct 31, 2022, BAuto’s net profit rose to RM65.67mil from RM26.04mil a year earlier, while revenue grew to RM782.97mil from RM483.84mil in the previous corresponding period.

Basic earnings per share stood at 5.65 sen compared with 2.24 sen previously.

BAuto said the higher group revenue was achieved mainly due to the continued fulfilment of the substantial back orders received prior to the expiry of the sales tax exemption incentive on June 30, 2022.

“The preceding year’s corresponding quarter revenue was adversely impacted largely due to lower sales as the showrooms were only allowed to operate under strict compliance with certain standard operating procedures despite the lifting in August 2021 of the total lock down, which was implemented under Phase 1 of the National Recovery Plan in June and July 2021.

BAuto said gross margin for its Mazda operations had improved due to the change in composition of sales mix and the appreciation of the ringgit against the yen.

“Likewise, contributions from its associated company, Mazda Malaysia Sdn Bhd (MMSB), had improved in line with the higher sales volume in the domestic market.

“During the quarter under review, the group had also registered higher contributions from its Peugeot and Kia operations.”

For the six-months period ended Oct 31, 2022, BAuto’s net profit jumped to RM115.83mil from RM36.31mil a year earlier, while revenue grew to RM1.5bil from RM804.63mil in the previous corresponding period.

BAuto also declared a second interim dividend of 3.5 sen, to be paid on Jan 6, 2023.

On its prospects, BAuto said it continues to register positive results for its current quarter, mainly due to the clearing of the substantial backorders received prior to the expiry of the sales tax exemption incentive in June 2022.

“In addition, to mitigate the contraction in sales volume post June 2022, the group had embarked on a promotional campaign to absorb 50% of the sales tax for vehicle bookings made between the period from July 2022 up to December 2022.

“The strengthening of the ringgit against the yen and higher contributions from the group's Peugeot and Kia operations, as well as higher share of results from MMSB had also contributed to the positive results of the group.”

BAuto added that its board anticipates the performance of the group for the rest of the financial year ending April 30, 2023 to remain positive.

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Bermaz Auto , BAuto , semiconductor , Mazda , ringgit

   

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