MIDF Research maintains Buy on Berjaya Auto, cuts target to RM4.62


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KUALA LUMPUR (June 12): MIDF Research has maintained its “Buy” rating on Berjaya Auto Bhd with a lower target price of RM4.62 (from RM4.70) and said the company’s  FY15 earnings grew 65.5% year-on-year to RM217.1 million, accounting for 96.2% and 100.8% of house and consensus expectations.

In a note today, the research house said the strong performance was driven by robust sales for Mazda 2 and Mazda CX-5 CKD.

“Net margin expanded by 2.81 percentage points to 11.9% as it benefited from weaker Yen.

“Total dividend declared for FY15 was at 14.60 sen.

“Maintain Buy with a reduced target price of RM4.62 to reflect potential margin erosion in the upcoming financial year,” it said.