File pic — RAJA FAISAL HISHAN/The Star
PETALING JAYA: Bermaz Auto Bhd
(BAuto) expects vehicle sales in the country to be impacted by the influx of Chinese-made vehicles.
For the first quarter ended July 31, 2024 (1Q25) the Mazda vehicle distributor’s net profit declined by 30% year-on-year (y-o-y) to RM70.2mil or earnings per share of 6.01 sen. This is in line with the group’s lower revenue which dropped by more than 20% y-o-y to RM846.2mil due to lower sales volume from its domestic operations, which was impacted by the launching of several new and facelift models by other marque distributors.
In a filing with Bursa Malaysia, BAuto also stated its higher revenue in 1Q24 was mainly attributable to the fulfilment of Mazda 3 backorders for the domestic market.
BAuto noted the launching of new and/ or new facelift models of the group’s existing and new vehicle marques are dependent on the market sentiments and economic conditions then.
The company added the overall Malaysian economy may see adverse impacts from inflationary pressures, ongoing uncertainties in geopolitical conflicts and weaker global growth.
Overall, the group anticipates its performance for the financial year ending April 30, 2025 to be challenging.
BAuto also approved and declared a first interim dividend of 3.50 sen single-tier dividend per share in respect of the financial year ending April 30, 2025 (preceding year's corresponding quarter ended July 31, 2023: 5.00 sen single-tier dividend per share).
The entitlement date has been fixed on Oct 18, 2024 and payable on Nov 6, 2024.
In a separate announcement, BAuto said it had entered into a conditional share subscription agreement with EP Manufacturing Bhd (EPM) to subscribe to 33.04 million new ordinary shares in the latter for RM19.8mil or 60 sen per share.
“The proposed subscription represents an opportunity for BAuto to acquire a strategic stake and participate in the future profitability of the EPM Group.”
EPM is principally involved in the manufacturing and supply of metal body panels, chassis parts and modular assembly of automotive parts and components to original equipment manufacturers.
BAuto said EPM is undertaking a strategic expansion plan which involves, among others, the proposed construction of a new Mazda CX-5 component manufacturing plant in Kedah.
“To fund the project, EPM proposes to raise RM39.6mil through a private placement of 66.1 million new EPM shares representing 30% of the existing issued share capital of EPM, of which the proposed subscription forms part of it.”
