Word from the grapevine is that it could be an Asian or European brand.
However, it would make sense for Bermaz Auto to snap up a Euro brand as it consolidates into a distributor of upmarket marques.
The group is also confident of renewing and extending its Mazda franchise agreement by another three to five years, given its track record and amicable working partnership with Mazda Japan.
Based on the bookings in hand, supported by the SST exemption, Bermaz Auto is confident of averaging 1,000 unit sales a month from July 2020 to April 2021, said Maybank IB.
Bermaz Auto is also confident of improving its margins, as it streamlined its incentives programmes.
Meanwhile, the group's 30%-owned assembler Mazda Malaysia Sdn Bhd should turn around from 2Q21 on higher productivity, said Maybank IB.
The research house expects these positives in Malaysia to offset the continued sluggishness in the Philippines operations where no SST exemption or equivalent benefits were introduced to boost the auto industry in the Covid-19 pandemic.
It kept its earnings forecasts on the group with core earnings of RM20mil to RM30mil a quarter in 2Q FY21 to 4QFY21.
Its target price remained similarly unchanged at RM1.65 on 14x FY22 price-earnings.
