BUSINESS

AMINVESTMENT BANK REITERATES 'BUY' CALL ON BERMAZ

13/06/2019 11:44 AM

KUALA LUMPUR, June 13 (Bernama) -- AmInvestment Bank has reiterated its “buy”  call on  Bermaz Auto Bhd (BAuto), on the company reporting a solid performance in the financial year ended April 30, 2019 (FY19).

BAuto’s net profit jumped 90 per cent to RM265.26 million for FY19 on improved domestic sales volume and gross profit margin, as well as higher profit contribution from 30 per cent-owned Mazda Malaysia Sdn Bhd.

 The research firm said BAuto’s FY19 core net profit was in line with the bank’s expectations but exceeded consensus forecast at 106 per cent.

BAuto’s higher net earnings were backed by a splendid 25 per cent year-on-year revenue growth to RM2.5 billion, it said.

Another research firm, Maybank IB Research said Mazda’s constant product refreshment will continue to drive sales for BAuto in both Malaysia and the Philippines.

“Furthermore, with 95,000 Mazda vehicles on Malaysian roads since 2009, BAuto is starting to reap the benefit of higher margins from its recurring after sales service and parts revenue,” it said.

As at 11.31 am, BAuto shares on Bursa Malaysia rose eight sen to RM2.48, with 4.12 million shares  changing hands.

-- BERNAMA

 


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