APM Automotive 1Q profit rises nearly 13% on better sales

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KUALA LUMPUR (May 5): APM Automotive Holdings Bhd's net profit rose 12.9% to RM10.55 million in its first financial quarter ended March 31, 2017 (1QFY17) from RM9.34 million a year ago due to better sales and lower foreign exchange (forex) losses.

Earnings per share stood at 5.4 sen compared to 4.78 sen in 1QFY16.

Revenue in the period grew 6.5% to RM294.08 million from RM276.14 million last year, with higher uptake of original equipment manufacturer parts, said the company in its Bursa Malaysia filing.

APM Automotive said its international operations continue to register revenue growth with a 20.9% increase in 1QFY17 to RM30.1 million from RM24.9 million last year.

It added that the stronger US dollar helped its marketing division register a profit against a loss in the same period last year, whereas its Indonesian operation bagged losses in the period on the back of lower forex gains.

Looking forward, APM Automotive expects a continued challenging environment as margins remain under pressure from lower volumes and higher costs.

"The group, which has a strong emphasis on technology for sustainable growth, would continue to drive the growth by developing higher quality products and expand product range locally and regionally," it added.

Shares of APM Automotive pared off 5 sen or 1.23% to close at RM4 today, giving it a market capitalisation of RM795.83 million.