RHB Research maintains Buy on Berjaya Auto, ups fair value to RM4.50

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KUALA LUMPUR (Nov 11): RHB Research has maintained its Buy rating on Berjaya Auto Bhd (BAuto) at RM3.25 with a higher fair value of RM4.50 (from RM3.60) and said Berjaya Auto was a beneficiary of Japan’s policy to competitively devalue the Japanese yen. (JPY)

In a note Tuesday, the research house said every 10 sen change in JPY/rinngit could impact net profit by about RM 5 million.

“The weaker JPY also gives BAuto an advantage in vehicle pricing negotiations as Mazda Motor Corp can now offer more competitive pricing to BAuto in ringgit terms without sacrificing its profit margin,” it said.

It said domestic Mazda sales were on track to meet house FY15 sales target while the eagerly-anticipated Mazda 2 B-segment competitor is on schedule for a Jan 2015 launch together with the CKD Mazda 3.

“Reiterate Buy with a revised target price of RM4.50 (38.5% upside),” it said.