Edited by: Sheera Abg Mansor
KUCHING: Strong demand for Proton cars boosted core net profits of parent company DRB-Hicom Bhd (DRB-Hicom) for financial year 2019 (FY19) to RM159.9 million which exceeded consensus expectations by 159 per cent.
AmInvestment Bank Bhd (AmInvestment Bank) as quoted in Borneo Post saw that DRB-Hicom posted superior profitability margins on all levels, leading to a core net margin of 3.9 per cent in the last quarter of FY19 (4QFY19).
It said in a statement, a cumulative revenue improvement in both the automotive and services segments, registered at RM7.4 billion and RM4.6 billion respectively, while its property, asset and construction (PAC) segment achieved a revenue of RM540.9 million.
DRB-Hicom’s automotive segment chalked up a five-year high profit before tax of RM258.7 million in 4QFY19, excluding the government grant in 2QFY18 due to a strong demand for Proton vehicles backed by the X70.
It further added, the sales volume for Proton will continue to be strong with the recent launch of Iriz, Exora and Persona and the upcoming launches of the Saga and X50 as its vehicles are affordably priced, catering to the mass market.
Source: Borneo Post