KUALA LUMPUR (June 12): Bermaz Auto Bhd (KL:BAUTO) said it is bracing for challenging times ahead, after its quarterly profits slumped to a three-year low, which it blamed on the continuous influx of competitively-priced China-made vehicles into the Malaysian market.

The automotive distributor's net profit for its fourth quarter ended April 30, 2025 (4QFY2025) fell 76.51% to RM21.2 million from RM90.2 million a year ago — its weakest quarterly earnings since 2QFY2022 — as revenue dropped 43.61% to RM528.65 million from RM937.53 million.

"The board anticipates the performance of the group to be challenging for the financial year ending April 30, 2026,” the company said in its latest quarterly results filing.

It also warned that the local automotive sector is expected to register lower growth as inflationary pressures, weaker global growth from geopolitical uncertainties and the outcomes of trade tariff negotiations are expected to impact the local economy.

Total vehicle sales in Malaysia for the first four months of 2025, according to data from the Malaysian Automotive Association (MAA), dropped 5.4% to 248,730 units from 263,050 units in the same period last year.

“The continuous influx of Chinese marque vehicles had also impacted the sales of other marques in the country. The launching of new and/or new facelifts models of the group’s existing and new vehicle marques are still very much dependent on the market sentiments and economic conditions,” Bermaz Auto said.

The group's net profit for the full FY2025 more than halved to RM155.91 million from RM345.58 million, as revenue shrank nearly 30% to RM2.62 billion from RM3.9 billion, with lower sales of Mazda and Kia vehicles.

It declared a fourth interim dividend of 1.5 sen per share, down from 11.75 sen in the same period last year. This brings its dividend payout for FY2025 to 16.75 sen, versus 26 sen for FY2024.

Bermaz Auto shares slipped 1.5 sen or 1.6% to close at RM1.04 on Thursday, valuing the company at RM1.09 billion.