DRB-Hicom expects FY22 results to be better than last year’s

Group delivers 4th consecutive quarters of profits on better performance from its operating companies

AFTER turning in four consecutive quarters of pretax profits, DRB-Hicom Bhd anticipates the current financial year ending Dec 31, 2022 (FY22), performance to be better than last year’s.

The buoyant stance is predicated on the better performance from the group’s operating companies, especially the automotive sector, banking sector, as well as the aerospace and defence sector. Without doubt, the resurgence of Proton Holdings Bhd’s marques is a prime contributor.

For the third quarter ended Sept 30, 2022, DRB-Hicom posted a net profit of RM143.95 million compared to a net loss of RM179.44 million in the same period a year before. This is on the back of quarterly turnover of RM4.54 billion, more than double the RM2.12 billion in FY21, according to its exchange filing yesterday.

For the first nine months (9MFY22), the conglomerate posted a net profit of RM287.77 million on the back of RM11.16 billion in turnover.

DRB-Hicom said its automotive sector brought in RM8.01 billion in revenue in the 9MFY22, a 54.7% improvement from the corresponding period last year.

It said the higher revenue was mainly from national carmaker Proton, automotive distribution companies, and manufacturing and engineering companies. These companies were significantly affected by the Covid-19 pandemic and the Movement Control Orders during corresponding period in the previous year.

Proton’s revival continues as its models received updates in 2022, leading to it surpassing the 100,000 mark at the end of September with 102,353 units delivered. The carmaker’s X series, namely the X50 and X70, continue to dominate their segments, while the Saga, which was refreshed in May, continues to be the volume seller. A total of 6,442 units of the Saga were delivered in September, the highest sold in a single month in 2022, the company said.

It added that 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.

The revenue of RM540.19 million recognised by the aerospace and defence sector for the 9MFY22 — up 19.7% from the corresponding period in 2021 — was brought in by higher deliveries of single-aisle aircraft parts, resumption of delivery of aircraft parts following the reopening of international flights, and the resumption of delivery of defence products.

The other sectors of the group also recorded increased revenues except for the postal sector, following a decline in the courier business due to decrease in overall parcel volume, especially from contract customers, and with major e-commerce players leveraging on their in-sourced delivery capabilities, according to the filing.

Despite the increasingly challenging business environment, the company said 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 continuing strict cost management.

The group’s banking segment aims to widen its Islamic banking reach through the diversification of its customer base and continued enhancement of its digital offerings. — TMR