CIMB Equities Research has initiated coverage on Berjaya Auto Bhd, describing the local Mazda distributor as having “the best acceleration in town”.

Berjaya Auto is principally the distributor and retailer of Mazda vehicles, which provides after-sales services for Mazda vehicles in Malaysia and the Philippines.

“Mazda has been outperforming its competitors over the past few years. Its sales volume growth in Malaysia has been outstanding, recording a FY09-14 five-year compounded annual growth rate of 60.7 per cent.

“Berjaya Auto’s venture into the Philippines has also been successful, with Mazda’s sales volume jumping 60 per cent year-on-year in FY13,” it said in a report yesterday.

CIMB Research said the success is mainly attributed to the Mazda brand’s competitive strengths, with a focus on engineering affordable vehicles that are enjoyable to drive.

“Berjaya Auto’s key success factors include its asset-light business model and pursuing the right strategy,” CIMB Research said.

It has tagged an “add” call for Berjaya Auto, with a target price of RM4.44, which was 35.4 per cent above the last traded price of RM3.28.