By Chong Sin Hao
Nikkei Markets
KUALA LUMPUR (Sep 11) -- Bermaz Auto up 3% at MYR2.09, highest since May after RHB Investment Bank upgrades to Buy from Neutral, raises target price to MYR2.30 from MYR2.15 on new SUV launch in late September. "FY18F earnings are on track to rebound on the back of the all new Mazda CX-5," says house in investor note, "we understand the new CX-5 would be immediately available in a CKD form at launch and would boost 2QFY18F earnings." Reviews of the new model already launched in other markets have been positive. Stock trades at 2018F P/E of 11.8x, below the three-year average of 12.3x. "Bermaz offers a base-case dividend yield of 5.8% that could be further enhanced by an additional MYR0.02 upon the completion of the Philippines IPO," adds house.
- By Chong Sin Hao; Dave.Chong@nikkeinewsrise.com; +60320267363
- Edited By Lopamudra Bhattacharya
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