KUALA LUMPUR (Feb 25): MBM Resources Bhd’s net profit for the fourth quarter ended Dec 31, 2021 (4QFY21) surged 52% to RM109.52 million compared to RM71.94 million in the year-ago period, driven by improved performance of its auto trading and auto parts manufacturing businesses.
Quarterly revenue was up marginally to RM562.18 million from RM560.42 million a year earlier, the group said in a filing with Bursa Malaysia.
On a quarterly basis, MBM Resources posted a profit compared with a net loss of RM5.25 million in 3QFY21. Revenue jumped 144% from RM230.56 million in the previous quarter as the group's business activities improved due to normalised operating conditions.
The group also declared a dividend of 15 sen per share, comprising a special dividend of 10 sen and a second interim dividend of five sen, to be paid on March 30 this year.
For the full financial year ended Dec 31, the company's cumulative net profit grew 5.64% to RM167.92 million from RM158.96 million a year ago, although cumulative revenue declined by 14.6% to RM1.53 billion from RM1.79 billion.
MBM Resources is an automotive parts manufacturing company that distributes and sells major international vehicle brands such as Daihatsu, Perodua, Mitsubishi, Volkswagen, Volvo and Hino.
On prospects, the group said the outlook for 2022 will be better as the economy is now fully open and recovery is on track, which will be bolstered further by booster roll-out.
The automotive industry is expected to face cost issues resulting from increases in raw material prices and logistics costs, as well as temporary supply chain disruptions due to Covid-19.
“Nonetheless, we remain cautiously optimistic that our results for 2022 will be overall better given the continued strong demand for vehicles supported by favourable interest rates, continuation of sales tax exemption until June 30, 2022, and introduction of new models including electric vehicles at more competitive prices,” the group added.
MBM Resources' share price gained one sen at RM3.10, with a market value of RM1.21 billion.