Latest news with #BermazAuto
Free Malaysia Today
2 hours ago
- Automotive
- Free Malaysia Today
Bermaz Auto stung by Chinese cars, skids to 5-year low
Bermaz Auto's Q4 FY2025 net profit crashed 76.5% to RM21.2 million from RM90.2 million a year ago. (Bernama pic) PETALING JAYA : Bermaz Auto Bhd's shares tumbled to its lowest in nearly five years after its net profit for the fourth quarter ended April 30 (Q4 FY2025) crashed 76.5% to RM21.2 million from RM90.2 million a year ago. This was its lowest quarterly profit in three years as revenue dropped 43.6% to RM528.7 million from RM937.5 million. For the full year, net profit fell 55% to RM155.9 million from RM345.6 million, as revenue dropped nearly 30% to RM2.62 billion from RM3.9 billion. Bermaz, which mainly assembles Mazda and Kia vehicles, attributed the steep drop in profit largely to China-made vehicles flooding into the local market. 'The continuous influx of Chinese vehicles had also impacted the sales of other marques in the country,' it said in a bourse filing yesterday. The automotive company's poor results disappointed investors and analysts alike, leading to a plunge in its share price today. The stock fell as much as 11.3% or 11 sen to 82 sen, its lowest level since late 2020. At this price, the company has a market capitalisation of RM962 million. Since the end of 2024, Bermaz has been on a downtrend as rising popularity of Chinese car brands among Malaysians has eroded sales of its Japanese-made Mazda and Korean-made Kia vehicles. Year to date, its shares have slumped 48%, wiping out half of the company's value. Hong Leong Investment Bank downgraded the stock to 'sell', stating competition in Malaysia and the Philippines is expected to intensify with the influx of Chinese manufacturers 'offering feature-rich models at competitive prices'. Bermaz has sought to mitigate the impact of Chinese brands in the domestic market by offering Chinese marques, having secured the distribution rights to Xpeng and Deepal cars, which are mainly electric vehicles. In a note, Apex Securities said sales of XPeng vehicles, while appearing promising, have yet to contribute significantly to offset the slide in Mazda and Kia sales. The research house downgraded Bermaz to 'hold' from 'buy', highlighting the 'intense competition' in the industry and weaker sales across key locally assembled models. The outlook remains murky with Bermaz anticipating its performance to be challenging for the financial year ending April 30, 2026, its filing said. Total vehicle sales in Malaysia for the first four months dropped 5.4% to 248,730 units from 263,050 units in the same period last year, according to Malaysian Automotive Association data.
Malaysian Reserve
13 hours ago
- Automotive
- Malaysian Reserve
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)
The Sun
2 days ago
- Automotive
- The Sun
Sarjit Singh: Wales friendly match a final test for players
SHAH ALAM: National men's hockey squad head coach Sarjit Singh wants to make the friendly match against Wales this Friday as the players' final test ground before the 2025 Nations Cup. He said the match will see all 20 players given the opportunity to play as a continuation of the two previous tours. 'We will give all 20 players who will play in the Nations Cup just a try run for them because we have already been to the Australia Tour and the South Korea Tour. 'So far the players' motivation is very high. I have been with this team for almost a year now so we understand each other and this team is getting better and better,' he said. He said this when met at the handover ceremony of 10 Mazda vehicles by Bermaz Auto to the Malaysian Hockey Confederation (MHC). The vehicles will be used by officials involved throughout the Nations Cup Championship from June 15 to 21. Meanwhile, Sarjit said that his team is focusing on the first two matches against Pakistan this Sunday and New Zealand the next day as benchmarks before determining targets for the squad in the competition. 'If we win, we will definitely go to the semi-finals but all the teams will also want to win,' he said. Malaysia were drawn in Group B together with New Zealand, Japan and Pakistan, while Group A comprises France, South Africa, South Korea and Wales. Malaysia finished seventh in the last edition in Gniezno, Poland.
The Sun
2 days ago
- Automotive
- The Sun
Speedy Tigers to get final test in friendly match against Wales
SHAH ALAM: National men's hockey squad head coach Sarjit Singh wants to make the friendly match against Wales this Friday as the players' final test ground before the 2025 Nations Cup. He said the match will see all 20 players given the opportunity to play as a continuation of the two previous tours. 'We will give all 20 players who will play in the Nations Cup just a try run for them because we have already been to the Australia Tour and the South Korea Tour. 'So far the players' motivation is very high. I have been with this team for almost a year now so we understand each other and this team is getting better and better,' he said. He said this when met at the handover ceremony of 10 Mazda vehicles by Bermaz Auto to the Malaysian Hockey Confederation (MHC). The vehicles will be used by officials involved throughout the Nations Cup Championship from June 15 to 21. Meanwhile, Sarjit said that his team is focusing on the first two matches against Pakistan this Sunday and New Zealand the next day as benchmarks before determining targets for the squad in the competition. 'If we win, we will definitely go to the semi-finals but all the teams will also want to win,' he said. Malaysia were drawn in Group B together with New Zealand, Japan and Pakistan, while Group A comprises France, South Africa, South Korea and Wales. Malaysia finished seventh in the last edition in Gniezno, Poland.
Yahoo
08-05-2025
- Business
- Yahoo
Calculating The Intrinsic Value Of Bermaz Auto Berhad (KLSE:BAUTO)
A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model . How far off is Bermaz Auto Berhad ( KLSE:BAUTO ) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by taking the expected future cash flows and discounting them to today's value. Our analysis will employ the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple! The RM1.27 analyst price target for BAUTO is 27% more than our estimate of fair value Story Continues We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (3.6%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 11%. Terminal Value (TV)= FCF 2034 × (1 + g) ÷ (r – g) = RM71m× (1 + 3.6%) ÷ (11%– 3.6%) = RM1.0b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= RM1.0b÷ ( 1 + 11%)10= RM378m The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is RM1.2b. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Relative to the current share price of RM1.1, the company appears around fair value at the time of writing. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. KLSE:BAUTO Discounted Cash Flow May 8th 2025 The Assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Bermaz Auto Berhad as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 11%, which is based on a levered beta of 1.188. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Check out our latest analysis for Bermaz Auto Berhad SWOT Analysis for Bermaz Auto Berhad Strength Debt is not viewed as a risk. Dividend is in the top 25% of dividend payers in the market. Weakness Earnings declined over the past year. Opportunity Good value based on P/E ratio compared to estimated Fair P/E ratio. Threat Dividends are not covered by cash flow. Annual earnings are forecast to decline for the next 3 years. Looking Ahead: Although the valuation of a company is important, it shouldn't be the only metric you look at when researching a company. DCF models are not the be-all and end-all of investment valuation. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. For Bermaz Auto Berhad, we've compiled three relevant aspects you should assess: Risks: For example, we've discovered 2 warning signs for Bermaz Auto Berhad (1 is potentially serious!) that you should be aware of before investing here. Future Earnings: How does BAUTO's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. Simply Wall St updates its DCF calculation for every Malaysian stock every day, so if you want to find the intrinsic value of any other stock just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
