With investors and analysts turning bearish, the stock fell as much as 10.4% or 7 sen to 60 sen. It closed 9.6% lower at 61 sen, valuing the group at RM715 million.
It has plummeted nearly 62% year to date, wiping over RM1 billion off its market capitalisation.
In a bourse filing yesterday, Bermaz reported an 88.2% drop in net profit to RM8.28 million from RM70.22 million a year ago for the first quarter ended July 31, 2025 (Q1 FY2026).
Quarterly revenue fell 41.9% to RM491.28 million from RM846.18 million. The board declared a single-tier first interim dividend of 0.75 sen per share.
The latest results follow a disastrous Q4 FY2025 that saw a 76.5% drop in net profit to RM21.2 million from RM90.2 million a year earlier.
The company expects the challenging operating environment that led to seven straight quarters of dwindling earnings to remain as Chinese automakers expand in Malaysia.
Its net profit accounted for just 5% of the consensus full-year forecast, prompting deep cuts in estimates.
Bermaz, formerly known as Berjaya Auto Bhd, now has eight “sell” calls, six “hold”, and only two “buy” ratings from research houses.
TA Research cut its FY2026-FY2027 earnings forecast by 31.1% and 33.1%, lowering its target price by 32% to 51 sen from 75 sen previously.
The research house said the “intensifying competition and irrational pricing from Chinese-made vehicles” will continue to erode Bermaz’s market share and dampen sales volumes.
“The proliferation of Chinese car brands, aggressive pricing, advanced features, and shorter product cycles, are expected to elevate the price war which will dent profit margins,” it said in a note today.
Optimism for recovery
However, there may be some light at the end of the tunnel for Bermaz, according to MBSB Research.
“We expect stronger quarters ahead, with Mazda CX-60 (500 bookings) deliveries starting this month to contribute from Q2 FY2026, while Mazda 3 1.5L variant (1,700 bookings) should drive sales from Q3 as deliveries commence in late October and early November,” it said in a note.
Ironically, a Chinese car brand may well be a catalyst for its recovery. MBSB said Xpeng – introduced in Q2 FY2025 – helped soften the impact with quarterly sales outperforming its expectation and increasing 18% quarter-on-quarter.
MBSB kept its “neutral” call on the stock but lowered its target price to 59 sen from 75 sen previously.
The company’s largest shareholder with a 15.37% stake as of June 23, 2025, is Dynamic Milestone Sdn Bhd, the vehicle of Bermaz executive chairman Yeoh Choon San and group CEO Lee Kok Chuan.