Bauto performance analysis

Compared with the same period last year, Bauto's revenue and net profit increased by 28.6% and 37.2%, respectively. This is mainly due to the growth of Mazda's business in Malaysia, particularly the CX-30, which has maintained high sales volume since its launch in March 2023. In addition to this, Philippine's Mazda brand business performance also improved, up RM3.12mil, or 34.1% compared to the same period last year. It is important to note that Bauto's main revenue is contributed by Mazda. The Japanese yen has been falling against the Malaysian dollar for 21 years, which also helps the cost of imported cars from Japan to be cheaper.

Also, Bauto launched the CX-3 IMP5, CX-5 IPM6, and CX60 in '24. This has also strengthened Bauto's profit prospects. Currently, BAuto still has a 3.5k car backlog, so it can be seen that his sales are still very strong.

Although Bauto is a very strong company, the risks we need to be aware of include the trend of yen against Malaysian currency and Malaysia's RON95 gasoline subsidy policy. Most of Bauto's consumers are middle income cohort, and rising oil prices may affect its future performance. Recently, Malaysia has also introduced more and more Chinese cars, especially electric vehicles. It is impossible to see any impact on traditional fuel vehicles in the short term, but it is difficult for Mazda's electric vehicles to compete with Tesla and other Chinese electric vehicles regardless of specifications and prices. Bauto's PE is 7.31 times, and the dividend yield is as high as 9.32%, which is a very high dividend ratio. We'll keep watching.

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Welcome to the last sharing session of Shengcai YouDao in 2023