CIMB Investment Bank Bhd (CIMB Securities) has maintained its BUY call on Bermaz Auto Bhd with an unchanged target price of RM1.25, citing expectations of a strong FY27F earnings rebound driven by the upcoming Mazda CX-5 launch, improving Mazda volumes and a recovery in associate contributions.
The research house noted that XPeng’s expansion strategy and a turnaround in key associates are also expected to support growth momentum after two consecutive years of earnings decline.
According to CIMB Securities, Bermaz Auto is positioning for a meaningful recovery in FY27F, with management increasingly optimistic on its outlook. The group is expected to benefit from Mazda’s near- and mid-term product pipeline, alongside XPeng’s growing role as a second growth engine. CIMB Securities highlighted that associate earnings, which swung from a profit of RM11.8 million in FY25 to a loss of RM25 million in FY26, are expected to recover as losses at Kia Malaysia narrow and contributions from Mazda Malaysia and Inokom improve.
The research house forecasts a 28% year-on-year rise in core net profit in FY27F, supported primarily by the new CX-5 launch. It added that stronger-than-expected bookings, which have already reached around 3,000 units in early traction scenarios, could provide further upside to earnings estimates.
CIMB Securities also pointed to Bermaz Auto’s expanding Mazda pipeline as a key long-term driver, including a new CKD B and C-segment SUV expected by end-2027 or early 2028 and a next-generation CX-30 model thereafter. The group is targeting 16% volume growth to 15,800 units in FY27F.
On XPeng, CIMB Securities said the EV brand is becoming increasingly material, contributing 25% to 30% of group net profit in FY26 compared with 10% to 15% in FY25. The research house noted that local assembly of the XPeng G6 in Melaka strengthens pricing competitiveness amid new EV import rules, with FY27F sales targeted at 2,200 units.
As of 11.02 am, the stock price rose 1.96% to RM1.04.
