Thursday 28 Mar 2024
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KUALA LUMPUR (Sept 8): Berjaya Auto Bhd (BAuto) said its 60.4%-owned subsidiary in the Philippines intends to seek a listing on the main board of the Philippine Stock Exchange.

BAuto said an announcement will be made once Bermaz Auto Philippines Inc (BAP) has finalised the details of its listing proposal and BAuto directors have approved the proposal.

BAP is involved in the distribution of Mazda vehicles and spare parts through appointed dealers in the Philippines.

In a separate filing to Bursa Malaysia, BAuto said its first quarter net profit fell 21.24% to RM41.11 million or 3.59 sen a share, from RM52.2 million or 4.58 sen a share a year earlier, on lower revenue and compressed gross profit margin as the yen strengthened significantly against the ringgit.

Revenue for the quarter ended July 31, 2016 (1QFY17) fell 3.69% to RM493.62 million from RM512.55 million in 1QFY16, on lower sales volume of Mazda vehicles.

BAuto has proposed an interim dividend of three sen a share, payable on Oct 21. The entitlement date is Oct 6.

On its prospects, BAuto said domestic demand for passenger cars for the rest of FY17 is expected to be soft due to subdued consumer sentiment and uncertainties in the local and global economy.

"The weakening of the ringgit against yen remains an area of concern to the Malaysian operation as it will affect the profit margin of completely build-up (CBU) vehicles.

"Notwithstanding these challenges, the group will take diligent steps to ensure the domestic operations continue to perform satisfactorily and maintain its profit and business sustainability," said BAuto.

In the Philippines, the group expects its operations to remain on course to grow further as it continues to strengthen its presence by expanding its dealer sales network and upgrading existing ones.

"At the same time, the group will also gradually introduce new vehicle models to ensure sustainability of its sales volume growth," it added.

BAuto's share price fell 3 sen or 1.3% to RM2.25 today, with 777,600 shares traded, giving the group a market capitalisation of RM2.58 billion.

 

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