PETALING JAYA: With strong sales expected across its three brands – Mazda, Kia and Peugeot, Bermaz Auto Bhd
(BAuto) is on track to meet its sales target of 18,000-19,000 units for financial year ending April 30, 2023 (FY23).
UOB Kay Hian (UOBKH) Research said based on its latest channel check, it gathered that BAuto had an outstanding number of backlog orders as of end-January 2023, which would take the automotive company some six to seven months to fulfill.
According to the research firm, this was mainly due to BAuto’s attractive offer to its customers by absorbing 50% of the increase in the sales and service tax (SST) from July 2022 until end-Dec 2022, for new bookings across its three brands.
“The strong order book will provide BAuto with sales visibility for the second half of (2H) of FY23 to 1Q24,” it said in a report.
According to UOBKH Research it estimated that about 28%, or 2,000 units, of the 7,200 outstanding orders for Mazda cars were placed during the SST exemption periods while the remaining 5,200 units were ordered during post-SST eras.
The research firm said it anticipates 3Q23 result, which is slated to be released in mid-March, to come in better year-on-year (y-o-y).
“We expect BAuto’s results to be better y-o-y as the 3Q22 performance did not fully recovered from the chips and components shortage, and the emergence of the new Covid-19 variant,” it said.
It noted that during this period, BAuto managed to sell about 3,945 cars, while the total units sold during 1H23 was about 9,059 units.
“We think BAuto is on track to fulfill its sales target of 18,000 to 19,000 units for Malaysia and the Philippines as production is being ramped up to clear outstanding orders. With our back-of-the-envelope calculation, we expect BAuto to deliver a net profit of RM55mil to RM60mil in 3Q23,” added UOBKH Research. However, the research firm said while the group’s electric vehicles (EVs) segment was growing, adoption was still slow.
“In 1Q of (calendar year) 2023, BAuto will introduce the Peugeot e-2008 into its existing EV line-up, which currently includes Mazda’s and Kia’s MX-30 and EV6.
Despite the fact that the first batch of KIA EV6 (150 units) was fully sold, the sales of EVs are likely to remain negligible due to the lack of infrastructure, high prices and the high cost of maintaining the vehicles,” it said.
