Stronger earnings visibility forecast for BAuto


Maybank IB lifted core profit forecasts for the group over its financial year ending April 30, 2026 (FY26), FY27 and FY28 by 56%, 30% and 40%, respectively.

PETALING JAYA: Bermaz Auto Bhd (BAuto) is on track for recovery, supported by expanded Mazda model offerings, favourable foreign-exchange conditions that are lifting margins and a sharp reduction in associate losses as operations stabilise, analysts say.

“We believe the trough is likely over. Order backlogs remain robust at more than 3,400 units led by the CX-60 and Mazda 3 both launched in the second half of last year,” said Maybank Investment Bank Research (Maybank IB).

The research house upgraded BAuto to a “buy” from “hold” and raised its target price to 86 sen, citing stronger earnings visibility over the next three years.

The research house lifted core profit forecasts for the group over its financial year ending April 30, 2026 (FY26), FY27 and FY28 by 56%, 30% and 40%, respectively.

This will be driven mainly by lower losses from associates, higher sales volume assumptions and an improved sales mix that favours higher-margin fully imported completely-built-up models.

Maybank IB said the company’s recent launches of the CX-60 and a new 1.5-litre Mazda 3 variant last year have been well received. Combined bookings of about 2,300 units were realised, with total Mazda bookings rising to around 3,000 units from roughly 1,500 units.

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