Analysts maintained a NEUTRAL call on Bermaz Auto Berhad following weaker-than-expected first-quarter results.
Below Expectations
The group’s performance came in below expectations as domestic operations were dragged by ageing models and intense competition in the automotive market.
Philippines Operations Improved
On a brighter note, its Philippines operations showed sequential improvement, providing some offset to weaker local sales.
Bermaz Auto: Earnings Forecasts Cut
Sales volume assumptions and margin expectations have been revised downwards, leading to a reduction in earnings forecasts by -33% for FY26E and -35% for FY27F.
Lower Target Price
In line with the revision, the target price has been cut to RM0.59, down from RM0.75 previously.
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