MBM Resources, a major Perodua shareholder, doubles its Q4 2020 profit to nearly RM100m

MBM Resources Berhad, (MBMR) has announced its financial results for the fourth quarter of 2020, and it sees the group’s revenue rise by RM70.6 million (+14.3% against Q4 2019) to close at RM563.4 million. The company also doubled its profit before tax (+104%) with an increase of RM49.2 million to RM96.5 million.

Now who is this MBMR? If you follow the business pages, the counter is a direct proxy of Perodua, meaning that since Malaysia’s auto market leader isn’t a listed company, this is the best KLSE stock to buy if you want to bet on P2. With a 20% stake in P2 and a hand in big vendors such as Oriental Metal Industries (alloy wheels) and the HHB group (Autoliv Hirotako makes safety belts, airbags), MBMR’s fortunes are linked to local consumer demand for cars.

By the way, in 2020, Perodua sold 220,163 units for a 41.6% market share, beating its sales target of 210,000 units despite Covid/MCO-related production challenges. Perodua president and CEO Datuk Zainal Abidin Ahmad said then that the better-than-expected sales tally had a direct positive impact on the Malaysian automotive ecosystem, helping both independent parts suppliers and dealers weather the challenging year that was 2020.

“With the extension of the sales tax exemptions for passenger vehicles until June 30 under the Penjana stimulus package and the positive customer response seen in the second half of 2020, the group is looking forward to sustain buying interest in both our passenger and commercial vehicles in 2021. We would like to take this opportunity to thank the government as well as all stakeholders for the support given,” said newly appointed CEO and president of MBMR, Muhammad Fateh Teh Abdullah.

“The group however, is also mindful of the challenges and uncertainties coming from the unabatedly high Covid-19 cases within the country and globally which will certainly be the key risk factor undermining the group’s performance in the near term, although we are diligently practicing Covid-19 measures and procedures at all our outlets and premises to minimise the risk,” he added.

Also under MBMR is Daihatsu Malaysia (dealer for Daihatsu and Perodua, the latter via DMMS), Hino Motors Manufacturing (trucks) and Federal Auto, the dealership synonymous with Volvo in Malaysia. FA is also a dealer for Volkswagen. Following the Q4 2020 results, MBMR declared a single-tier second interim dividend of six sen per share.

The post MBM Resources, a major Perodua shareholder, doubles its Q4 2020 profit to nearly RM100m appeared first on Paul Tan's Automotive News.



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