Sunday 14 Jul 2024
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KUALA LUMPUR (May 25): MBM Resources Bhd posted a 10.45% drop in net profit to RM79.96 million for the first quarter ended March 31, 2023 (1QFY2023), from RM89.28 million a year ago, despite higher revenue due to the inclusion of a non-operating gain previously.

Earnings per share fell to 20.46 sen from 22.85 sen, according to the automotive group's bourse filing.

Quarterly revenue rose 16.15% to RM555.79 million from RM478.51 million, driven by both the motor trading and auto parts manufacturing divisions.

In 1QFY2022, MBM Resources registered a non-operating gain of RM30.4 million from the disposal of a piece of leasehold land in Bandar Serendah, Selangor.

Excluding the non-operating gain, the group said its profit before tax for 1QFY2023 would have been higher at RM93.6 million — as opposed to RM68.1 million in the prior year — coming mainly from both high vehicle sales and production volume.

“Similarly, the higher volumes were reflected in the share of results in joint ventures with an increase of RM4.2 million or 137.6% to close at RM7.3 million. The share of joint venture results was also inclusive of a share of lump sum costs recovery of approximately RM1.9 million received from certain OEMs (original equipment manufacturers).

“The share of associates' results likewise increased substantially with RM17.1 million or 33.6% higher compared with the same quarter last year as the carmakers increased production volume to meet the remaining of the Penjana bookings by March 31, 2023,” MBM Resources said in the filing.

The group expressed concern about the end of the Penjana sales tax exemption period, higher material and new vehicle prices due to the higher interest rate environment, and continued disruptions in semiconductor chip supply.

However, new models — especially electric vehicles — are expected to fuel customer interest in purchasing new vehicles this year, it said.

“Additionally, Perodua’s continuing strong order bank is also anticipated to assist in sustaining MBM Resources for the near term,” MBM Resources added.

At Thursday’s close, MBM Resources’ share price was eight sen or 2.35% higher at RM3.49, giving the group a market capitalisation of RM1.36 billion.

Edited ByS Kanagaraju
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