Bermaz Auto Bhd’s (BAuto) first-quarter results for FY2027 came in ahead of expectations, driven by stronger-than-anticipated margins from its Mazda Malaysia operations and robust demand for the Mazda 3 1.5L High+, according to MBSB Research.
The research house said BAuto recorded core profit after tax and minority interests (PATAMI) of RM39.6 million for 1QFY27, accounting for 32% of its full-year forecast and 31% of consensus estimates.
“The positive variance was mainly attributable to better-than-expected margins from Mazda Malaysia,” MBSB said.
BAuto’s board declared a first interim dividend of 2.0 sen per share, translating into a payout ratio of about 57%.
MBSB maintained its earnings forecasts pending further details from the company’s results briefing, while keeping its target price unchanged at RM0.85, based on an unchanged eight times FY27 forecast price-to-earnings multiple.
The valuation represents about a one standard deviation discount to BAuto’s five-year historical average, which MBSB said reflects continuing intense competition in Malaysia’s non-national automotive segment.
Mazda 3 Drives Domestic Sales
Group revenue increased 12.6% year-on-year in the quarter, led by a 21.2% expansion in domestic operations.
Mazda Malaysia unit sales surged 89.8% year-on-year, with the increase driven entirely by the Mazda 3 1.5L High+, which registered an 18.4-fold jump in sales.
The stronger Mazda performance lifted domestic operating profit by 2.4 times year-on-year.
XPeng unit sales also rose by 6% from a year earlier, although MBSB said profitability for the electric vehicle brand was affected by higher promotional activity and discounting.
Overall, BAuto’s core PATAMI increased 4.6 times year-on-year, supported by stronger domestic margins and a lower effective tax rate.
Philippines Operations Remain Weak
The group’s Philippines business continued to weigh on overall performance.
Revenue from the Philippines fell 42.5% year-on-year following a 43.3% decline in Mazda Philippines unit sales, resulting in a 69.6% contraction in operating profit.
On a quarter-on-quarter basis, group revenue edged up 1.5%, supported by stronger Malaysian sales.
Mazda Malaysia and XPeng unit sales increased by 6.6% and 47.1% quarter-on-quarter, respectively.
However, domestic operating profit fell 33.4% from the previous quarter as heavier promotions weighed on XPeng profitability.
Philippines revenue declined a further 20.7% quarter-on-quarter as unit sales dropped 28.9%, while operating profit fell 13.9%.
As a result, group core PATAMI declined 11.5% quarter-on-quarter.
Backlogs Moderate
MBSB said Mazda Malaysia’s order backlog stood at about 1,700 units, down from 2,000 units at the end of 4QFY26.
XPeng had an outstanding order book of about 250 units, while Mazda Philippines’ backlog stood at approximately 200 units.
Despite the stronger-than-expected quarterly earnings, MBSB kept its forecasts unchanged for now, citing the need for further clarity from management and the competitive environment in Malaysia’s non-national vehicle market.
