PETALING JAYA: Bermaz Auto Bhd
(BAuto) is set for an earnings rebound after two consecutive years of profit decline, supported by the new CX-5 launch, higher sales volume from Mazda and improvements in associate earnings.
CIMB Research opined that the group is in a good position to resume growth in the financial year 2027 (FY27), and extend its momentum into FY28, driven by Mazda’s robust product pipeline.
The research house said it forecast a 28% year-on-year rise in core net profit in FY27, largely underpinned by Mazda’s new CX-5 launch.
“Near term, the all-new CX-5 has garnered encouraging early demand, securing around 300 bookings as of end-June 2026.”
The group has also obtained allocation for 2,000 units from Mazda Japan, with deliveries expected to start from the third quarter of 2026. “Stronger-than-expected uptake could provide additional upside to our forecasts, particularly if bookings surpass 3,000 units,” it said.
In addition to the CX-5, Mazda’s plan to launch a completely knocked down B/C-segment sport utility vehicle (SUV), followed by a next-generation CX-30 across the next few years, bodes well for the group’s outlook.
“This steady cadence of new model launches should support showroom traffic, enhance sales visibility, and provide a sustainable growth runway for BAuto over the medium term.”
Meanwhile, XPeng has emerged as an increasingly important growth driver for the group, with the brand contributing 25% to 30% of group net profit in FY26, up from 10% to 15% the year before.
It noted that the launch of two XPeng mass-market electric vehicles (EVs) priced below RM140,000 and a larger three-row SUV should help the brand broaden its addressable market and strengthen penetration across EV segments.
Moreover, XPeng last month commenced the local assembly of its G6 SUV at EP Manufacturing Bhd’s Melaka facility, which CIMB Research sees as a strategic move to preserve pricing competitiveness amid the Investment, Trade and Industry Ministry’s minimum cost, insurance and freight requirement for fully imported EVs.
The research house said it was also encouraged by the group’s expectation that its associates would return to profitability.
While BAuto’s share of associate earnings fell from a RM11.8mil profit in FY25 to a RM25mil loss in FY26, the group is anticipating the drag will ease from lower losses at Kia Malaysia, a recovery at Inokom, and stronger contributions from Mazda Malaysia.
