Bermaz Auto May Receive Special Dividend Boost From Mazda Malaysia

Bermaz Auto Bhd (KL:BAUTO) may receive a special dividend from its 30%-owned associate, Mazda Malaysia Sdn Bhd, potentially serving as a re-rating catalyst, according to CIMB Securities. A special dividend between RM200 million and RM300 million could add RM60 million to RM90 million in income for Bermaz, translating into an additional 7.7 sen dividend per share and a 3.4% yield.

CIMB noted Mazda Malaysia’s improved financials, with cash reserves rising to RM668 million by March 2024, but has not factored this potential dividend into forecasts. Despite competition, Bermaz Auto remains a “buy” with an 8.6% dividend yield. However, CIMB revised its target price to RM2.90 from RM3.20 due to a slight volume forecast cut.

Bermaz Auto Recap

Bermaz Auto may receive a special dividend from Mazda Malaysia, potentially boosting income and enhancing shareholder value.

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