BAuto said the overall outlook for the automotive industry in the second half of 2023 is expected to be positive, underpinned by a stable economic outlook.
PETALING JAYA: Bermaz Auto Bhd
(BAuto) expects the local automotive sector to continue registering growth, albeit at a slower pace, following the expiry of the sales tax exemption incentives in the last quarter of its previous financial year.
In a filing with Bursa Malaysia, BAuto said total industry volume (TIV) growth would also be underpinned by improvements in the supply chain and vehicle shipments.
For its first quarter ended July 31, BAuto’s net profit doubled to RM100.22mil from RM50.16mil in the previous corresponding period, while revenue in the first quarter surged to RM1.09bil from RM716.87mil a year earlier.
Basic earnings per share stood at 8.59 sen versus 4.32 sen previously.
BAuto said the improved earnings were mainly attributable to the increase in sales volume for its Mazda marque domestic operations.
“The higher group revenue of RM372.4mil, an increase of 51.9%, was mainly attributable to the Mazda marque domestic operations, particularly the CX-30 completely knocked down model which was introduced to the domestic market in March and the continued fulfilment of the balance back orders for Mazda 3.
“The group’s pre-tax profit had also improved by RM66.1mil or 88.6% compared with the preceding year’s corresponding quarter, mainly from the higher sales volume for the Mazda domestic operations and higher contribution from its associated company, Mazda Malaysia Sdn Bhd.”
BAuto is the franchise holder of Mazda in Malaysia and the Philippines, Kia and Peugeot (distributor) in Malaysia.
Going forward, BAuto said the overall outlook for the automotive industry in the second half of 2023 is expected to be positive, underpinned by a stable economic outlook.
“The TIV forecast for 2023 was revised upwards from 650,000 units to 725,000 units.”
In the Philippines, BAuto noted that the Philippine Statistics Authority had reported in August that the country’s gross domestic product (GDP) posted a growth of 4.3% for the second quarter of 2023.
“The slowdown in GDP was mainly due to inflationary pressures and high interest rates. Despite the various risks and challenges, the Philippines’ economic outlook is expected to remain positive.”
Additionally, BAuto said factors such as inflationary pressures, uncertainties in geopolitical conflicts and weaker global growth would continue to have an impact on the overall economy.
“Hence, the launching of new and/or new facelifts models of the group’s vehicle marques namely Mazda, Peugeot and Kia, are still very much dependent on the market sentiments and economic conditions then.
“Barring any unforeseen circumstances, the board anticipates the performance of the group to remain positive for the financial year ending April 30, 2024 (FY24),” said BAuto.
It declared a first interim dividend of five sen single-tier dividend per share in respect of FY24. The entitlement date has been fixed on Oct 20 and payable on Nov 3.
