Bermaz Auto Likely to Face Rising Competition in Malaysia -- Market Talk

Dow Jones
2024/12/13

0113 GMT - Bermaz Auto Malaysia's operational landscape could become more competitive with the entry of Chinese cars offering competitive pricing, Hong Leong IB analyst Daniel Wong says in a note. However, the company's new electric vehicle distributorships for Xpeng and Deepal could support its profitability in the coming quarters, he says. Bermaz Auto's planned launch of several new models is expected to boost market interest, he adds. Wong lowers Bermaz Auto's FY 2025-FY 2027 earnings forecast by 30.6%, 19.7% and 19.2%, respectively, to account for lower sales volume and margins. Hong Leong also cuts Bermaz Auto's target price to MYR1.80 from MYR2.40 while maintaining a hold rating on the stock. Shares are 1.5% lower at MYR2.01. (yingxian.wong@wsj.com)

 

(END) Dow Jones Newswires

December 12, 2024 20:13 ET (01:13 GMT)

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