KUALA LUMPUR (Aug 27): MBM Resources Bhd (KL:MBMR) declared a 28 sen per share dividend payout — comprising a special dividend of 20 sen and a first interim eight sen — as it reported a 32.3% jump in second-quarter net profit from a year ago on stronger contributions from its associates.

Both the special and interim dividends will be paid on Sept 25. The year-to-date payout is six sen more than the 22 sen declared for the corresponding period in 2025, according to a bourse filing of the automotive group that owns a 20% stake in national carmaker Perusahaan Otomobil Kedua Sdn Bhd (Perodua).

The group's net profit grew to RM95.96 million for the quarter ended June 30, 2026 (2QFY2026), from RM72.54 million for 2QFY2025, while revenue rose 3% to RM620.13 million from RM602.16 million.

MBM Resources said the stronger quarterly performance was mainly driven by improved contributions from its associates, which surged 39.6% to RM90.3 million on sustained demand, more working days, and favourable foreign exchange gains arising from a stronger ringgit against the Japanese yen and US dollar.

The group also recorded improved contributions from its auto parts manufacturing segment, thanks to fewer plant shutdowns and stronger production demand from carmakers, with improved production volumes and yields lifting the segment's performance.

While its motor trading and assembly segment saw slightly higher revenue from increased Daihatsu and Perodua vehicle sales, profit was broadly unchanged as changes in its sales mix, margins and operating costs offset the improvement.

For the first half ended June 30, 2026 (1HFY2026), MBM Resources' net profit rose 10.8% to RM159.49 million from RM143.93 million for 1HFY2025, even as revenue slipped 1.1% to RM1.16 billion from RM1.18 billion. The cumulative earnings were supported by the share of results from associates, which rose by RM22.3 million or 17.1%.

The group said business conditions improved in the second quarter after a softer start to the year, as automotive sales and production recovered following scheduled plant shutdowns by several carmakers.

MBM Resources is positive about its prospects for the remainder of FY2026, following stronger-than-expected vehicle sales recorded in the country in the first half that prompted the Malaysian Automotive Association to raise its 2026 total industry volume forecast to 800,000 units from 790,000 units. The latest forecast represents a marginal decline of 2.5% from the record 820,752 units achieved in 2025.

The group said it plans to capitalise on the market recovery by strengthening its core businesses and expanding its retail network. "At the same time, the group remains committed to pursuing business opportunities through mergers and acquisitions and joint ventures that complement our existing
businesses and support sustainable long-term growth," it added.

Shares of MBM Resources closed eight sen or 1.6% higher at RM5.04 on Thursday, valuing the group at RM1.97 billion.