KUALA LUMPUR (May 23): MBM Resources Bhd announced today its net profit for the first quarter ended March 31, 2019 (1QFY19) came in 51.31% higher at RM49.66 million from RM32.82 million a year ago, helped by strong demand for Perodua vehicles.

Meanwhile, earnings per share rose to 12.7 sen from 8.4 sen previously.

Quarterly revenue grew 14.9% to RM532.45 million from RM463.46 million in the corresponding quarter a year ago on improved performance at its motor trading segment.

MBM, in its exchange filing today, said the segment saw a 17.1% increase in revenue, contributed by good demand for the Perodua vehicles, especially for the Myvi and Axia models.

In addition, the new Perodua Aruz and Volvo XC40 also garnered strong interest with the latter catering to a wider market segment.

However, consumer interest for Volkswagen appeared to have tapered down after the high demand during the GST tax holiday in 2018.

Meanwhile, its loss-making auto parts manufacturing segment recorded a marginal 3.2% increase in revenue due to sustained production demand from car makers to fulfill earlier backorders and to replenish depleted stocks.

MBM said the group is on track to close the operation of its alloy wheel plant by mid-year this year.

It said it remains optimistic of the group’s prospects moving forward, despite challenging market and economic environment.

Shares in MBM closed 10 sen or 3.45% lower today at RM2.80, for a market capitalisation of RM1.09 billion.