KUALA LUMPUR (Feb 27): MBM Resources Bhd posted a net profit of RM60.08 million or 15.37 sen per share for the fourth quarter ended Dec 31, 2018 (4QFY18), compared with a net loss of RM181.63 million or 46.47 sen per share a year earlier, on the back of lower impairment changes.

Quarterly revenue climbed 15.28% to RM498.98 million from RM432.83 million previously (4QFY17), the group said in a filing with Bursa Malaysia.

MBM said the turnaround was due to much improved results from its motor trading division, as well as the group’s joint venture and associates.

Only RM2 million in property, plant and equipment was impaired during the quarter, it said.

In contrast, the group had recognised one-off adjustments of RM238.3 million in the year-ago fourth quarter, comprising of RM176.6 million of impairment in goodwill and joint venture investment in its subsidiary Hirotako Holdings Bhd, and RM61.2 million of impairment in the property, plant and equipment of mainly its alloy wheel plant.

For the full year ended Dec 31, 2018 (FY18), MBM posted a net profit of RM165.55 million or 42.35 sen per share, versus a net loss of RM138.72 million or 35.49 sen per share in the previous year.

Revenue grew 12% to RM1.93 billion, from RM1.72 billion in FY17.

Looking forward, the group said its growth in 2019 is expected to be driven by private sector demand, amid continuing fiscal rationalisation, while the external sector is likely to soften with moderating global demand.

While the group anticipates the year to be a challenging one, given that private consumption in the automotive sector may soften after a year of good performance, MBM remains optimistic on its car sales outlook.

Shares of MBM Resources closed one sen or 0.39% higher at RM2.59 today, giving it a market capitalisation of RM1.01 billion.