KUALA LUMPUR (June 12): Bermaz Auto Bhd (KL:BAUTO) surged to a 13-month high on Friday as the car assembler's earnings for the recently-ended financial year beat market expectations.
At least three research houses upgraded their recommendations for the stock. Net income exceeded the consensus estimates by more than 20% for the 12 months ended April 30, 2026 (FY2026) and analysts said the worst is likely over for Bermaz Auto but cautioned that competition remains intense.
“We expect stronger earnings delivery” driven by the upcoming new launch of the CX-5 sport utility vehicle model, CIMB Securities said, and upgraded Bermaz Auto to ‘buy’ from ‘hold’ and raised its target price to RM1.25.
Shares of Bermaz Auto climbed as much as 11.5 sen or nearly 13% to RM1.02, its highest since May 2025. Bermaz Auto ended Friday's trading session 99.5 sen, valuing the company that mainly assembles Mazda-branded vehicles at RM1.2 billion.
Trading volume was higher than usual as over 15 million shares changed hands.
Bermaz Auto has climbed more than 45% since the year began. Apart from recent earnings recovery, an appreciating ringgit has also helped to cut costs of imported vehicles and components.
There are now six ‘buy’, six ‘hold’ and two ‘sell’ calls, according to research houses tracked by Bloomberg. The average target price has also risen to 99 sen.
“The operating environment in Malaysia is expected to remain highly competitive” with Chinese rivals and their heavily-discounted offerings at a time of weaker consumer sentiment and potentially higher fuel prices, Hong Leong Investment Bank flagged.
Still, the house upgraded the stock to ‘buy’ from ‘hold’, noting that Bermaz Auto’s net cash position and recovering earnings will support a dividend yield of 10%.