Wednesday 24 Apr 2024
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KUALA LUMPUR (Dec 9): MIDF Research has maintained its “Buy” rating on Bermaz Auto Bhd at RM1.99 with a higher target price (TP) of RM2.67 (from RM2.36) and said Bermaz’s 1HFY23 core earnings beat estimates.

In a note on Friday (Dec 9), the research house said Bermaz’s 1HFY23 interim dividend more than triple last year’s.

It said core 2QFY23 earnings were up 31% quarter-on-quarter driven by stronger volume, core operating margin uplift and higher associate contribution.

Given the outperformance, MIDF raised its FY23F/24F by 13%/4%.

It said this is mainly to reflect higher margins from a higher CKD composition in the sales mix as well as a lower yen (JPY): ringgit assumption for FY23F of JPY(x100):RM3.30 (from our previously conservative assumption of  JPY(x100):RM3.60 previously.

“We have penciled in conservative forex assumption of JPY:RM3.70 for our FY24F.

“Our volume forecasts are left unchanged as 1HFY23 group TIV of 9,059 units was well in-line accounting for 50% our FY23F,” it said.

 

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