KUALA LUMPUR (June 13): PublicInvest Research has maintained its “Outperform” rating on Bermaz Auto (BAuto) at RM2.33 with a higher target price of RM2.57 (from RM2.41) and said BAuto recorded a 4QFY18 net profit of RM57.2 million (+158% y-o-y), bringing its full year FY18 net profit to RM140.1 million (+18% y-o-y).

In a note today, the research house said it was slightly above house expectations, accounting for 109%, but within consensus’ at 100% of full year estimates.

It said the discrepancy was mainly due to better-than-expected contribution from its associate of Mazda Malaysia (MMSB) owing to increase in production volume for the new CX-5 model (+40% y-o-y) for both the domestic and export markets.

PublicInvest said the improvement in earnings was also due to higher sales recorded by the domestic operations and strengthening of the ringgit against yen.

“This however partially off-set by lower contribution from the Philippine operation on the back of weakening peso against yen.

“We maintain our earnings forecast and roll-over our PE-valuation to FY20 EPS. As a results, our Outperform call for BAuto is retained but at a higher target price of RM2.57 (previously RM2.41), pegged to 13x FY20 EPS.

“BAuto declared a fourth interim dividend of 2.30 sen and a special dividend of 2.70 sen, bringing its full year dividend per share to 10.40 sen (FY17: 11.65 sen),” it said.