KUALA LUMPUR (June 18): Automotive parts manufacturer KHPT Holdings Bhd (KL:KHB) expects to generate RM155 million in revenue from a new contract awarded by Perusahaan Otomobil Nasional Sdn Bhd (Proton) to supply structural components for an upcoming model.

The contract, awarded to its wholly owned unit Automev Global Sdn Bhd (AGSB), is dependent on projected orders from Proton and will remain valid throughout the model’s lifecycle, said KHPT in a statement on Thursday.

Under the agreement, AGSB will manufacture and supply selected structural components to support Proton’s production needs, with output to be carried out at KHPT’s existing facility in Telok Panglima Garang, Selangor.

KHPT group managing director Datin Eloise See said the contract highlights the group’s continued role in the domestic automotive supply chain and its longstanding relationship with Proton.

“This (contract) reflects our technical capabilities, manufacturing discipline and commitment to consistently meeting customer requirements. We remain focused on operational execution, quality, and supporting the long-term development of Malaysia’s automotive supply chain,” she said.

For the first quarter ended March 31, 2026, KHPT’s net profit fell to RM400,000 from RM611,000 a year earlier, as revenue declined to RM19.01 million from RM23.13 million.

The weaker performance was attributed to lower production volumes, which dropped by 531,486 units to 2.96 million units from 3.49 million units previously. The group also continued to face cost pressures from regulatory changes introduced in mid-2025, including the expanded sales and service tax regime and a 2% Employees Provident Fund contribution for non-Malaysian workers.

Shares in KHPT closed unchanged at eight sen on Thursday, giving the group a market capitalisation of RM32.2 million.