This article first appeared in The Edge Financial Daily on August 21, 2019

KUALA LUMPUR: MBM Resources Bhd’s net profit more than doubled to RM74.04 million in the second quarter ended June 30, 2019 (2QFY19), from RM34.55 million a year ago, mainly lifted by a one-off RM24.8 million gain on disposals.

The motor vehicle group recognised the gain on the disposal of a 22% shareholding in its associates Hino Motors Sales (M) Sdn Bhd and Hino Motors Manufacturing (M) Sdn Bhd.

In a filing with Bursa Malaysia yesterday, the group said the higher earnings were also due to a better performance on all fronts.

Quarterly earnings per share ballooned to 19.94 sen from 8.83 sen previously, while revenue was up 15.42% to RM558.05 million from RM483.48 million.

MBM Resources declared a first interim dividend of six sen per share, payable on Sept 19.

For the cumulative first half of the year (1HFY19), the group saw its net profit grow 83.62% to RM123.69 million, from RM67.36 million in the same period last year. Revenue rose 15.15% to RM1.08 billion, from RM935.41 million previously.

On prospects, MBM Resources said the global market and economic environment for the second half of the year are expected to be challenging, which will have an impact on the local economy.

Notwithstanding that, the group remains on track with its plans and is optimistic about its performance, given the strong customer demand for the brands within the group.

Shares of MBM Resources closed 30 sen or 8.9% higher at RM3.67 yesterday, valuing the group at RM1.44 billion. Year-to-date, the counter has climbed by 72%.