KUALA LUMPUR (Sept 10): Higher contributions from associate companies and stronger Mazda sales lifted Bermaz Auto Bhd’s (KL:BAUTO) net profit nearly fivefold in the first quarter.

Net profit for the first quarter ended July 31, 2026 (1QFY2027) rose to RM40.51 million from RM8.28 million a year earlier, according to the group's bourse filing on Thursday. Share of results from associates swung to a profit of RM1.06 million from a loss of RM9.32 million.

Revenue increased 12.58% to RM553.08 million from RM491.28 million in 1QFY2026 mainly due to higher sales volumes from the group's domestic Mazda operations, particularly the Mazda 3, although this was partly offset by lower Kia sales volume following the cessation of the Kia distributorship in November last year.

BAuto declared a first interim dividend of two sen per share, with the entitlement date fixed for Oct 20 and payment scheduled for Nov 4.

Looking ahead, BAuto said the automotive market remains challenging amid geopolitical conflicts and the continued influx of Chinese-brand vehicles offering aggressive pricing, which has created inventory overhang and a disorderly pricing environment characterised by continuous discounting.

BAuto also said evolving government policies could affect the broader economy and automotive landscape. Despite the challenging operating environment, the group said its new completely built-up (CBU) models, including the Mazda3 and XPeng G6 and X9, had been well received by consumers.

“The board is cautious of the changing environment but remains positive that the group will be able to maintain its competitive position and profitability for the financial year ending 30 April 2027,” BAuto said.

BAuto expects its upcoming models, including the new CBU Mazda CX-5 2.5G and CBU Mazda CX-80 3.3G mild-hybrid electric vehicle, to be well received by consumers.

Shares of BAuto ended half a sen or 0.53% lower at 93 sen on Thursday, giving the group a market capitalisation of RM1.08 billion.