KUALA LUMPUR (June 13): CIMB IB Research has maintained its “Add” rating on Bermaz Auto Bhd at RM2.40 with a higher target price of RM3.30 (from RM2.85) and said Bermaz’s FY4/19 results beat house expectations by 11% and consensus by 7% due to better-than-expected margin in 4QFY19, driven by lower operating expense.

In a note June 12, the research house said Bermaz also declared a higher 10.5 sen interim and final DPS in the quarter, raising the total FY19 dividend to 21.25 sen, ahead of our expectation.

CIMB Research expects Bermaz to deliver 5% volume growth in FY20F, driven by new model launches such as Mazda 3, CX-8, CX-30 and new facelift model for CX-5 that will include a 2.cc Turbo variant in Malaysia in 2HCY19.

Moreover, it said the group is cautiously optimistic for higher sales delivery in the Philippines, driven by new models.

“We raise FY20-21F EPS by 15-17%. Maintain Add with a higher RM3.30 target price,” it said.