KUALA LUMPUR (May 31): DRB-Hicom Bhd reported a smaller net loss of RM16.96 million for the first quarter ended March 31, 2021 (1QFY21), compared with RM173.27 million a year earlier, on the back of a better performance by its automotive and services sectors.
Quarterly revenue rose 28% to RM3.51 billion, from RM2.74 billion, due to rising automobile demand, improved showing by operating subsidiaries, and a higher share of results from joint ventures and associated companies.
DRB-Hicom said the automotive sector once again held fort for the group, largely due to higher sales of vehicles and components by Proton, automotive distribution companies and also from manufacturing and engineering companies.
“The sales tax holiday for passenger vehicle purchases that was extended to June 2021 enabled the group’s automotive brands to net a revenue worth RM2.58 billion in 1QFY21 (1QFY20: RM1.81 billion),” it said in a statement.
“Brands under the DRB-Hicom umbrella, including Proton, Honda, Mitsubishi, Volkswagen and Isuzu fared better sales in March versus February 2021.
“Malaysian Automotive Association (MAA) data show that national carmaker Proton sold 32,420 units in (the first quarter), keeping its second place in national sales charts. Honda, too, retained its top non-national brand status with 14,771 units sold in the quarter.
“MAA reckons total industry volume (TIV) for 2021 will rise 8%, primarily driven by passenger vehicle sales,” read the statement from DRB-Hicom.
DRB-Hicom said its services sector’s revenue saw a slight increase to RM863.66 million, from RM830.48 million in 1QFY20, once again boosted by the performances of postal and logistics as well as banking subsidiaries.
The properties sector, meanwhile, saw a drop in revenue to to RM69.66 million. from RM93.34 million in 1QFY20, mainly due to lower revenue recognised from property development projects.
Moving forward, DRB-Hicom expects the automotive sector to remain as its core business, with MAA’s projected TIV of 570,000 units due to the continuation of sales tax exemption for passenger vehicles until June.
According to the group, Proton saw continuing strong sales momentum in 2021 with a sales volume of 15,017 units in April, the best monthly sales figure since 2013.
This upward momentum is expected to continue with the expected boost in demand forwarded by MAA’s projections, DRB-Hicom said.
DRB-Hicom’s share price dropped four sen or 2.16% to RM1.81, valuing the group at RM3.5 billion.
