BAuto Navigates Market Shifts Amid Rising Competition

Bermaz Auto Bhd (BAuto) distributors of Mazda, Kia, Xpeng, and Deepal, expect challenges ahead due to the increasing presence of Chinese-made vehicles, compounded by the upcoming petrol subsidy rationalisation, and higher base electricity tariffs set for mid-2025.

These factors may influence the launch of new and facelifted models of its vehicle marques, depending on market conditions and consumer sentiment.

For its third quarter financial year ending Jan 31, BAuto reported a lower net profit of RM24.1 million, or earnings per share of 2.07 sen, compared to RM70.5 million or 6.04 sen, in the same quarter last year.

Revenue also declined by 32.8% to RM602.1 million, down from RM896.5 million in the previous year.

The revenue decline was mainly due to lower sales for the Mazda and Kia brand in Malaysia as it faces stiff competition from Chinese-made vehicles that are priced more competitively. In contrast, the previous year's revenue was bolstered by strong sales of the locally assembled Mazda CX-30, which launched in March 2023.

For the nine-month period ending Jan 31, BAuto's net profit fell by 48.3% to RM134.7 million from RM260.8 million, while revenue dropped by 30% to RM2.09 billion from RM2.99 billion.

The company also incurred an expense of RM5.3 million related to its employees' share scheme, compared to just RM0.3 million in the same period last year.

BAuto's board has approved a third interim single-tier dividend of 1.75 sen per share for the financial year ending April 30, 2025 (FY25), lower than the 4.25 sen per share declared in the same quarter last year. The entitlement date is April 22, with payment scheduled for May 7.

Despite the challenges, total dividends declared for the financial period ended Jan 31 stand at 15.25 sen per share, up from 14.25 sen per share in the previous financial period.

BAuto acknowledges the uncertainties ahead and remains cautious about the company’s performance in FY25.

Source: The STAR