KUALA LUMPUR (Aug 21): APM Automotive Holdings Bhd (KL:APM), an auto parts maker, logged a 16.4% increase in second-quarter net profit, driven by a favourable sales mix and foreign exchange movements.

Net profit for the three months ended June 30, 2026 (2QFY2026) rose to RM13.1 million from RM11.25 million in the same quarter a year earlier, according to the group’s bourse filing on Friday. Earnings per share rose to 6.7 sen from 5.76 sen.

It declared an interim single-tier dividend of five sen per share, payable on Oct 2.

The stronger year-on-year (y-o-y) earnings came despite a 3.4% slip in revenue to RM475.61 million from RM492.59 million, dragged by a slowdown in demand from the original equipment manufacturing (OEM) segment, coupled with softer replacement and export markets.

Besides the favourable sales mix and foreign exchange movements, earnings were supported by a higher share of profit from associates and joint ventures and lower finance costs following the repayment of Islamic medium-term notes in the third quarter of 2025.

Segment-wise, profit before tax (PBT) at its core interior and plastics division fell 3.1% y-o-y to RM30.88 million, but the decline was offset by turnarounds in the suspension and marketing divisions, as well as its Indonesian and other overseas operations.

For the cumulative six months (1HFY2026), net profit fell 21.9% y-o-y to RM23.32 million, while revenue declined 12% to RM872.85 million.  

Domestically, APM Automotive said it expects OEM demand to remain broadly supported by continued vehicle production activities and new model introductions in the second half of
2026.

However, its export business continues to face challenges from evolving global trade policies, tariff developments, geopolitical tensions, exchange rate volatility and softer economic conditions in certain overseas markets.

Competition in the replacement market also remains intense amid an influx of lower-cost imported products and aggressive pricing by market participants. Still, APM Automotive expects aftermarket demand to remain supported by Malaysia’s growing vehicle population and regular maintenance requirements.

“Looking ahead, the group remains focused on the execution of its revised five-year strategic plan, which is aimed at enhancing long-term business resilience and capturing growth opportunities," it said. 

"With a robust financial foundation and the ability to adapt to changing market conditions, the group is confident in its capacity to navigate the ongoing challenges and deliver sustainable value to shareholders," APM Automotive added.

Shares of the group ended one sen or 0.36% lower at RM2.80, valuing the group at RM564.48 million.