MBM RESOURCES' Q4 NET PROFIT SOARS TO RM70.9 MLN

KUALA LUMPUR, Feb 25 -- MBM Resources Bhd (MBMR) boosted its net profit by 60 per cent to RM70.90 million in the fourth quarter (Q4) ended Dec 31, 2020, from RM44.22 million a year earlier.

Revenue also surged to RM563.42 million from RM492.81 million previously on stronger performance of both its motor trading and auto parts manufacturing divisions.

The group said its motor trading division's revenue jumped by 13 per cent to RM491.90 million on strong consumer demand in anticipation of the sales tax exemption ending at the end of 2020.

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MBMR owns 51.5 per cent equity interest in Daihatsu (M) Sdn Bhd, the exclusive sole distributor of Daihatsu light-duty commercial vehicles in Malaysia. It also holds Perodua and Volvo dealerships.

“Vehicle sales volume for all our brands were generally higher, especially for our commercial vehicle Daihatsu Granmax which continued to enjoy high demand from the booming e-commerce logistic service industry with volume increased by 44.3 per cent against the corresponding quarter in 2019,” it said in a filing with Bursa Malaysia today. 

The group said volume for its Perodua and Volvo vehicle sales were also higher than the corresponding quarter, limited only by the stock supply it received during the quarter.

On its auto parts manufacturing division, MBMR said revenue grew 24 per cent year-on-year to RM71.13 million in the quarter under review mainly due to increased demand from carmakers for all the products within the division.

Despite the strong Q4 2020 performance, the group's net profit for the full year fell to RM157.92 million from RM223.67 million in 2019. Revenue fell about 14 per cent to RM1.80 billion.

On prospects, the company said it looked forward to sustain buying interest in both passenger and commercial vehicles in 2021 with the extension of the sales tax exemptions for passenger vehicles until June 30, 2021, under the National Economic Recovery Plan (PENJANA) and the positive customer response seen in the second half of 2020.

-- BERNAMA