KUALA LUMPUR (Dec 11): Affin Hwang Capital Research has downgraded Bermaz Auto Bhd to “Hold” at RM2.15 with a lower target price (TP) of RM2.06 (from RM2.30) and said Bermaz reported a disappointing set of results – 6MFY19 core net profit fell by 41% year-on-year to RM73 million, due to weaker revenue, weaker EBITDA margins and a weaker associate contribution.
In a note today, the research house said all in, the results were below street and house expectations.
“We cut our FY20-22E EPS forecasts by 16-25% and lower our TP to RM2.06 (from RM2.30).
“At 12x FY21E PER, Bermaz’s valuation looks fair. We downgrade our call to Hold from Buy,” it said.