PETALING JAYA: Stronger sales from Mazda Malaysia for the third quarter ended January 2026 (3Q26) are likely to drive better quarterly results for Bermaz Auto Bhd
(BAuto), which are due next week.
In a report, Kenanga Research said Mazda Malaysia’s 3Q26 sales increased 24% to 3,118 units, up 25% year-on-year.
“Stretching into the finish line, we see a stronger 4Q26 performance, backed by strong delivery of the Mazda 3 1.5L, which could reach as high as 800 units a month, supported by stable backlog bookings of 2,000 units each month,” the research house said.
It added that BAuto’s 3Q26 net profit could be between RM22mil and RM25mil, based on average selling prices.
“This implies nine months of 2026 net profit in the range of RM47.5mil to RM50.5mil, which is 71% to 76% of our full-year estimates, which we consider above expectations as we expect stronger sales in 4Q26,” Kenanga Research noted.
For 4Q26, the research house estimated Mazda sales could hit as high as 3,900 units, resulting in likely profit of RM29mil to RM33mil.
Notably, the 2025 Mazda 3 1.5L High Plus has been received extremely well. After two months, the backlog remains unchanged at 2,000 units.
BAuto’s total order backlog now stands at 3,500 units, with the majority coming from Mazda 3. “Mazda 3 is consistently reviewed as a premium alternative to mainstream C-segment cars like the Honda Civic and Toyota Corolla Altis, and is widely praised for its Jinba-Ittai driving dynamics and an interior that rivals European luxury brands,” it said.
The research house said it will raise its financial year 2026 (FY26) and FY27 net profit estimates by 15% and 7%, respectively, as it expects the delivery of completely built-up models to stabilise, while the automotive group transitions toward localisation of the all-new CX-5 in FY27 and FY28.
Kenanga Research also said it will raise its target price to RM1.10 from 80 sen, with price-to-earnings ratio valuations adjusted to nine times.
“We like BAuto for its strong near-term earnings visibility, its premium mid-market Mazda brand that offers superior margins, and its attractive dividend yield of about 7%.
“We expect the group to benefit from the recent weakening of the Japanese yen against the ringgit, more so, as it expands its new Mazda launches,” Kenanga Research added.
Similarly, UOB Kay Hian Research expects a sales recovery for Mazda.
The research house noted that the new third-generation CX-5, launching in July 2026, and a B-segment sport utility vehicle in FY28 will further support the group’s sales growth over the next two years.
“Overall, we project that sales of Mazda vehicles will sustain at an average of 800 units per month in the first half of 2026, before increasing to 1,000 units monthly following the launch of the new Mazda CX-5,” it said.
