COMMENTS ON BERMAZ AUTO BERHAD (5248)

BERMAZ AUTO BERHAD LAST 5 YEARS SHARE PRICE TREND

**analysis based in 2018 annual report.

1.       GENERAL INTRO: This counter core business is in the distribution Mazda cars. Some of the models are locally assembled while others are completely built up and imported from Japan or Thailand. Services include sales, spare parts and after-sales services. Also have distribution operations in the Philippines.

2.       NOTABLE POINTS:

a.       Cars use Mazda’s SKYACTIV Technology, which is well-recognised for its engine performance, safety and fuel economy. Recognizable car brand in Malaysia.

b.      Have manufacturing facility to assemble some of the models locally, which drives costs down and contribute toward local automotive industry in terms of investment and jobs for local citizens.

3.       IS THIS COUNTER A STRONG GROWTH STOCK? 

a.       REVENUE RANGE (million): ~ 1992 million in 2018 annual report, this is a high revenue company.

b.      SHARE PRICE: share price remain around RM2 in last few years, no significant increase.

c.       EARNING PER SHARE (EPS): been fluctuating in last few years, from 2014 to 2018, fluctuate from 10.25 sen to 18.74 sen, respectively.

d.      FUTURE POTENTIAL: last financial year car sales in Malaysia around 11000 units, total car sales in Malaysia around 580000 units, market share ~2%. There may be room for further growth.

e.      CAPITAL EXPENDITURE (CAPEX): spending on purchase of new fixed assets is quite low, 1.95 million, around 0.2% of total assets, appear company has no large scale expansion plan.

4.       IS THIS A STRONG DIVIDEND STOCK?     

a.       DIVIDEND YIELD: in 2018 report, dividend yield is quite good, around 6.42%

b.      CONSISTENCY: company consistently paid dividend to shareholders in last 19 quarters, amount of dividend per share range from 1.5-6sen per quarter

5.       OTHER INDICATORS:

a.       CASH FLOW: cash flow is positive, around 306 million

b.      SUPPORT BY INSTITUTIONAL INVESTORS: this counter is strongly supported by institutional investors, more than 75% of top 30 major shareholders are made up of institutional investors, including EPF, few insurance companies, investment funds, permodalan nasional berhad, skim amanah saham bumiputera and so on.

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