Bermaz Auto downgraded to Hold, target price lowered to 93 sen
Bermaz Auto Bhd 4QFY25 core net profit of RM21.9m down (-12.5% quarter-on-quarter, 55.6% year-on-year) came in below expectations, with FY25 core net profit accounted for 61% of our full-year forecasts and 93% of consensus estimates. The earnings miss mainly due to weaker-than-expected vehicle sales across key completely knocked down (CKD) models. The group declared a fourth interim dividend of 1.5 sen (4QFY24: 11.75 sen), bringing FY25 dividend per share to 16.75 sen (FY24: 26.0 sen). We have trimmed our FY26F and FY27F earnings by 47% and 45% respectively to account for the stiffer competition in the non-national segment and weaker forecasted sales across key CKD models. We downgrade Bermaz Auto to Hold (from Buy) with a lower target price of 93 sen (from RM1.40) pegged to 7.3x price-to-earnings multiple on FY27F earnings per share of 12.78 sen. – APEX Securities (June 13, 2025)
(Calls by analysts tracked by Bloomberg: 4 Buy, 10 Hold, 2 Sell; Consensus target price: RM1.10)
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