DRB-Hicom sees better financial performance in FY22

PETALING JAYA: DRB-Hicom Bhd anticipates the performance of its current financial year ending Dec 31, 2022 to be better than last year.

In a filing with Bursa Malaysia yesterday, the group reported a net profit of RM143.95mil for its third quarter ended Sept 30, 2022, compared with a net loss of RM179.44mil a year earlier.

Revenue grew to RM4.5bil from RM2.12bil a year earlier, while basic earnings per share stood at 7.45 sen, compared with a loss per share of 9.28 in the previous corresponding quarter.

DRB-Hicom said the higher revenue was mainly attributed to the higher sales from Proton vehicles as well as higher revenue from manufacturing and engineering and automotive distribution companies.

“In the corresponding quarter, the revenue for July and August was significantly affected by the lockdown and restriction of business activities under Phase 1 and 2 of the National Recovery Plan.

“The business operations were resumed after the re-opening of economic activities as announced by the Government in mid-August 2021.”

DRB-Hicom said its aerospace and defence sector recorded higher revenue mainly due to higher delivery of single-aisle aircraft parts and resumption of delivery of certain aircraft parts, following the reopening of international flights as well as defence products.

“The postal sector recorded lower revenue mainly due to the decline in courier business following the decrease in overall parcel volume, especially from contract customers.

“In addition, major e-commerce players leveraged their insourced delivery capabilities while international players pursued penetration strategies in order to capture a higher market share in the courier business.”

For the nine-month period ended Sept 30, 2022, DRB-Hicom reported a net profit of RM287.77mil, compared with a net loss of RM413.89mil a year earlier, while revenue grew to RM11.16bil from RM8.25bil in the previous corresponding period.

On its outlook, DRB-Hicom said the automotive industry remains on track to achieve its 2022 total industry volume forecast of 630,000 units.

“Sales of vehicles rose more than 60% to 516,798 units in the first nine months of 2022. Proton exceeded the 100,000-unit sales milestone, selling 102,353 units for the financial period ended Sept 30, 2022.

“In addition, this encouraging growth in sales volume drove better performance for the manufacturing and engineering companies within the group as they form part of Proton’s supply chain.”

Additionally, the company said the positive acceptance of products from all marques within the group including Honda, Mitsubishi, Isuzu and Volkswagen is expected to elevate DRB-Hicom’s overall automotive performance.

“Despite the increasingly challenging business environment, the postal segment remains focused on its transformation journey in providing great service for its customers, acquiring higher-yielding customers, optimising margin-led business and continuation of strict cost management.

“DRB-Hicom’s banking segment aims to widen its Islamic banking reach through the diversification of its customer base and continued enhancement of its digital offerings.”

The group added that all its other segments including defence, aerospace, services and properties remain in a resilient position focusing on long-term value creation.

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