BAuto has been enjoying stellar results from high margins and strong volumes over so many years that people may sometimes forget automotive is a cyclical business with a product life cycle of 7 years at most. Yield and valuation may be low but earnings are far from clear, hopefully new CX-5 will come soon, their bread and butter but even then the China cars will continue to bombard.

A couple of years ago Mazda was a premium brand that stood out against Honda and Toyota. It had a couple of models that were newly launched and proved to be big winners. That had taken BAuto past RM2.5b market cap. Currently there is a lot more competition especially from China, while its best seller CX5 is near end of life cycle. Valuation may be cheap but what will take this company to the next level and when will this happen? If it doesn't happen soon, will its earnings erode quickly?

Hard to say as business is dependent on one major customer, not sure what is their moat. Also depends on what they do with the cash. If more of it comes out as dividends or share buy back and assuming business goes on as usual, will be worth more.

Yes has always been net cash since listing except for FY2020 when operating cashflow took a dip.

The can easily afford more dividends, but guess management is conservative. Very little info out there about this company and their business.

More cash but also more borrowings

I bought some at RM1.60 not too long ago. I think I may average down if it goes to RM1.20.