This article first appeared in The Edge Financial Daily on November 22, 2019

KUALA LUMPUR: Strong Perodua car sales helped to lift MBM Resources Bhd’s net profit by 46% to RM55.76 million for the third quarter ended Sept 30, 2019 (3QFY19).

Higher vehicle sales and higher share of profits from a joint venture contributed to an 11.6% increase in revenue to RM515.32 million from RM461.84 million previously, said MBM in a filing with Bursa Malaysia yesterday.

It said demand for Perodua vehicles remained strong in this quarter especially with the Myvi, Axia and Aruz models, complemented by strong fleet sales volume from Daihatsu.

The group also benefitted from a gain on disposal of property for RM1.3 million.

For the nine-month period, net profit ballooned 70% to RM179.46 million from RM105.47 million on the back of its revenue which increased 14% year-on-year to RM1.59 billion.

Looking ahead, despite the challenging economic environment and the uncertainties at the local and global front, the group said its performance to-date outperformed the corresponding period.

“Towards the financial year ending Dec 31, 2019, the group anticipates to continue with strong performance, and we remain on track with our plans,” it said.

MBM’s share price dropped 20 sen or 5.13% to RM3.70 yesterday, valuing the group at RM1.45 billion. The stock has climbed some 68% year to date.