AllianceDBS Research keeps 'buy' call on Bermaz Auto

First visual of Mazda’s new SUV, set to be unveiled at the 2019 Geneva Motor Show. The rising popularity of SUVs is seen to benefit Bermaz Auto. — Picture courtesy of Mazda via AFP-Relaxnews
First visual of Mazda’s new SUV, set to be unveiled at the 2019 Geneva Motor Show. The rising popularity of SUVs is seen to benefit Bermaz Auto. — Picture courtesy of Mazda via AFP-Relaxnews

KUALA LUMPUR, Feb 7 — AllianceDBS Research has reiterated a “buy” call on Bermaz Auto Bhd (BAuto), the official distributor of Mazda cars and spare parts in Malaysia and the Philippines, on continuation of strong earnings momentum in third quarter financial year 2019.

“There is room for potential upside to earnings with sport-utility-vehicle (SUV) sales as the engine of growth,” it said in a note.

The research house said strong earnings momentum to continue, supported by high bookings and new launches.

“SUV’s rising popularity to benefit BAuto — led by new CX-5 and upcoming CX-8 launches,” it said.

AllianceDBS Research said sales of four-wheel-drive (4WD)/SUV models in Malaysia have outperformed industry growth since 2016 and at the same time, Mazda’s market share in that segment expanded exceptionally well from nine per cent to 12 per cent within the period.

AllianceDBS Research reiterated BAuto's share with a target price of RM3.00.

At 10.49am, Bermaz Auto's share price eased one sen to RM2.19 with 148,300 lots changing hands. — Bernama

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