Friday 29 Mar 2024
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KUALA LUMPUR (Sept 11): Berjaya Auto Bhd saw its share trading 3% lower than closing price yesterday, after the automobile distributor reported a weaker financial performance.

As at 10:16am, the counter was trading at RM2.07, fell six sen or 2.82%, volume was mild, with 939,100 shares done.

Last evening, Berjaya Auto released its financial result for the first quarter ended July 31, 2015 (1QFY16), which saw net profit dropped nearly 7% on-year to RM52.2 million, or 4.58 sen per share, from RM56.1 million, due to higher marketing expenses.

This is despite a marginal improve of 0.9% year-on-year in revenue to RM512.55 million, from RM507.95 million previously.

Nevertheless, the group still declared a first interim dividend of 2.25 sen, with an EX-date on Oct 6 this year.

Berjaya Auto said its performance might be affected by regulations and policies governing the importation of completely built-up (CBU) vehicles and completely knocked-down (CKD) parts into Malaysia.

In a statement yesterday, Berjaya Auto said the introduction of Goods and Services Tax (GST) had also impacted its revenue as sales are now recorded net of GST.

Meanwhile, its local and Philippine operations continued to record double-digit growth in sales volume for Mazda vehicles during 1QFY16.

However, the lackluster growth in revenue was largely due to unfavourable sales mix relating to the competitively priced Mazda2 SKYACTIV and Mazda3 CKD SKYACTIV models.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

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