Bermaz Auto's Margins Likely Sustained After Inventory Clearance — Market Talk

Bermaz Auto's margins are expected to be sustained after the company largely cleared its aged and slow-moving inventory through heavy discounting in earlier quarter, Maybank IB analyst Loh Yan Jin says in a note. She raises Bermaz FY 2027-2028 earnings forecasts by 30%-40% after its FY 2026 earnings beat expectations. She expects growth to be supported by new Mazda and XPeng model launches, with FY 2027 vehicle sales projected to rise 23% to about 16,000 units. Maybank raises Bermaz Auto's target price to 1.35 ringgit from 0.95 ringgit, while maintaining a buy rating on the stock. Shares are 9.4% higher at 0.99 ringgit. (yingxian.wong@wsj.com)