KUALA LUMPUR: Berjaya Auto Bhd, the distributor and assembler for Mazda Motor Corp vehicles in Malaysia, plans to raise dividends this year and double sales within three years with new models.
The company, which has about RM229 million of cash, will pay higher dividends tied to the quarter ended last month, Berjaya Auto director Francis Lee said in an interview on Wednesday.
Sales will be bolstered by four main models, with the Mazda 2 to be offered in January, he said.
Berjaya Auto plans to introduce newer models as it seeks to more than double its share of Malaysia’s market for foreign car brands in three years to as much as seven per cent, he said.
The stock rose the most in two weeks. It has rallied 94 per cent since January, outperforming rivals Tan Chong Motor Holdings Bhd and DRB-HICOM Bhd, which have tumbled at least 33 per cent.
“I paid two sen per share in the first quarter and this quarter we will pay something more,” Lee said.
“Going forward, I will be paying a quarterly dividend and this is unheard of for motor companies to pay a quarterly dividend.”
The company is also benefiting from the weaker yen as the cost of its imported cars and parts drop, which will widen profit margins, Lee said.
“Berjaya Auto is the main beneficiary of the weaker yen, compared to other players,” he said. For every 10 sen the ringgit appreciates against the yen, an additional RM4 million to RM5 million will flow into the company’s profit, he said.
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