This article first appeared in The Edge Malaysia Weekly on August 17, 2026 - August 23, 2026

Auto parts maker APM Automotive Holdings Bhd (KL:APM), the sister company of auto distributor and assembler Tan Chong Motor Holdings Bhd (KL:TCHONG), has staged a remarkable turnaround from its Covid-19 pandemic losses, driven by strong domestic demand in the original equipment manufacturing (OEM) market.

After returning to the black in the financial year ended Dec 31, 2022 (FY2022) with a net profit of RM26.4 million, the group’s net profit more than doubled to RM60.4 million in FY2023 and strengthened further to RM85.6 million in FY2024 — a 10-year high — before moderating to RM74.1 million in FY2025. This represented a compound annual growth rate (CAGR) of 32.8% over the FY2023 to FY2025 evaluation period, based on The Edge Malaysia Centurion Club Corporate Awards 2026 methodology.

The improving financials, paired with an increasing dividend payout — which doubled from 7 sen per share to 14 sen in FY2022, then rose to 18 sen in FY2023 and 28 sen in FY2024, before easing to 20 sen in FY2025 — steadily drew investor interest.

APM’s share price, which stood at RM1.55 (adjusted) by end-March 2023, rallied to RM2.37 a year later and reached RM2.81 by end-March 2025. It breached the RM3 mark to hit RM3.03 by March 31, 2026 — the cut-off date for the awards — nearly doubling the group’s market capitalisation to RM592.4 million over the three-year period.

This translates to a three-year shareholder return CAGR of 20.05%, the highest among the industrial products and services companies with a market cap of under RM1 billion on Bursa Malaysia. The feat earned APM its maiden Centurion Club award for Highest Returns to Shareholders Over Three Years in its sector.

APM is controlled by president Datuk Tan Heng Chew, 79, who also heads Tan Chong Motor and Warisan TC Holdings Bhd (KL:WARISAN). Tan holds a direct stake of 4.43% in APM and indirect equity interest of 45.34% via Tan Chong Consolidated Sdn Bhd (37.54%) and Wealthmark Holdings Sdn Bhd (7.81%).

The group manufactures automotive parts such as suspension products, seats, electrical components, compressors, cooling coils and radiators. While its main operations are in Malaysia, it also has a presence in the US, the UK, the Netherlands, Australia, Thailand, Vietnam, Indonesia and Myanmar.

APM’s earnings moderated in FY2025 despite Malaysia charting another record year of vehicle sales, as growth was driven by imported vehicles rather than local production, leaving component makers here with little share of that expansion. The group also started FY2026 on a softer note, with first-quarter net profit dropping 45.1% year on year to RM10.22 million from RM18.6 million, on a 20.5% decline in revenue to RM397.24 million.

APM attributed the first-quarter drop to slower OEM demand, alongside a softening in the replacement and export markets. Increased competition also ate into margins, although the impact was partially mitigated by favourable exchange rates and lower finance costs.

Nevertheless, APM remains cautiously optimistic. In the group’s 2025 annual report released in late April, Tan said the group’s collaborations with OEMs and accelerating local completely knocked down (CKD) assembly have positioned the group to capture emerging opportunities, as the market transitions following the expiry of the tax incentives for completely built-up (CBU) electric vehicles (EVs) at the end of 2025.

In addition, as of July this year, the Malaysian government requires fully imported CBU EVs to meet a minimum cost, insurance and freight (CIF) value of RM200,000, with a power output of at least 180kW. Against this backdrop, the Malaysian Automotive Association expects total industry volume to moderate to 790,000 units in 2026 from 820,752 in 2025, ending four consecutive years of record growth amid broader economic moderation and intensifying competition.

“For APM, 2026 presents a dual imperative: defending market leadership in a softening top-line environment while capturing structural growth embedded within the market’s ongoing transformation,” management noted in the annual report, adding that momentum should build through the year as new model launches — particularly in the EV and Plug-in Hybrid EV (PHEV) segments — gain commercial traction.

“While the era of consecutive record-breaking industry volumes has concluded, the underlying composition of demand is shifting in ways that play to APM’s core competencies: quality, innovation and deep OEM partnerships … Our diversified portfolio, sustained R&D (research and development) investments and disciplined operational efficiency initiatives position the group to defend profitability while positioning for the next phase of industry evolution,” it said.

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