KUALA LUMPUR (Nov 19): Auto parts maker APM Automotive Holdings Bhd (KL:APM) posted a 27.94% drop in net profit for the third quarter on foreign exchange losses.

Net profit for the three months ended Sept 30, 2024 (3QFY2024) fell to RM18.67 million as compared to RM25.91 million, the group’s Tuesday bourse filing showed. Earnings per share fell to 9.55 sen versus 13.25 sen.

This was despite revenue for the quarter rising 4.9% to RM545.19 million from RM518.45 million last year.

The group’s bottomline was pressured mainly by unrealised forex loss arising from trade receivables denominated in foreign currencies following the ringgit’s strengthening.

No dividend was declared for the quarter.

For the nine months ended Sept 30 (9MFY2024), the group made a net profit of RM48.67 million, up 26.81% from RM38.38 million in the same period last year, as cumulative revenue rose 2.29% to RM1.49 billion from RM1.46 billion previously.  

Going forward, APM Automotive noted that currency fluctuations will remain a risk while its export segment continues to show strong performance due to improved market conditions following 2023’s subdued demand.

“Additionally, the ongoing tension in the Middle East remains a risk to supply chain stability, which, if escalated, could further derail the revenue and margins of the group’s export segment,” it added.

Shares in APM Automotive closed eight sen or 2.76% lower at RM2.82, valuing the auto parts maker at RM568.51 million.