PETALING JAYA: DRB-Hicom Bhd
expects a satisfactory performance for its financial year ending Dec 31, 2023 (FY23), emphasising its steadfast commitment to executing strategies and driving the business forward.
Within its automotive segment, which contributes the bulk to its revenue, DRB-Hicom said its portfolio which features brands like Proton, Honda, Mitsubishi, and Isuzu, are all gearing up to capture market interest with new model launches.
DRB-Hicom said its 50%-owned Proton Holdings Bhd will penetrate the niche local electric vehicle market by featuring advanced technology within its line-up in the coming years.
It pointed out that Proton’s first new energy vehicle, the mild hybrid Proton X90, has attracted over 4,000 new buyers since its launch in May 2023.
“Other marques within the group’s stable, such as Honda, Mitsubishi and Isuzu, will further create market interest with the introduction of exciting new models that are currently in the pipeline,” it said in a filing with Bursa Malaysia.
On its other other business segments including banking, aerospace and defence, services and properties, DRB-Hicom said it will remain focused on preserving value and intensifying sustainability efforts.
Regarding its postal segment, DRB-Hicom emphasised its ongoing efforts to transform through digitalisation, aiming to improve operations, enhance customer experience, and develop new business potentials.
For its third quarter ended Sept 30, 2023 (3Q23), DRB-Hicom saw its revenue decline by 12% to RM4bil compared with RM4.54bil in 3Q22, mainly due to lower contributions from its automotive, aerospace and defence, postal and properties segments.
The net profit for the quarter, meanwhile, halved to about RM70.8mil compared to RM143.95mil in 3Q22.
This decrease was primarily due to lower contributions from its automotive, aerospace and defence, postal, and properties segments.
Within the automotive segment, DRB-Hicom said Proton faced challenges from new car model launches by competitors and thus achieved lower sales in the current quarter.
Basic earnings per share stood at 3.66 sen versus 7.45 sen previously.
For the nine months ended Sept 30, 2023 (9M23), however, DRB-Hicom’s revenue increased by 8.2% to RM12.08bil compared with RM11.16bil in the corresponding of 2022, while net profit dropped to RM212.42mil compared with RM287.77mil in 9M22.
Excluding the income arising from the disposal of a former subsidiary Lotus Advance Technologies Sdn Bhd amounting to RM119.51mil in the corresponding period, DRB-Hicom explained that the group reported higher profits.
It further added that the group's better results for the 9M23 were mainly due to increased profits from the automotive and properties sectors.
“In the corresponding period, certain automotive companies recorded lower profits mainly due to the lack of available stocks as a result of disruption in supply by the flood-affected local vendors and global chip shortage,” it said.
