Rev­enue rises to RM122.93m in first quar­ter on higher au­to­mo­tive sales

New Straits Times - - Business / News -


SHAH ALAM bt@me­di­aprima.com.my

BOLSTERED by pro­jec­tions of mod­est in­crease in ve­hi­cle vol­umes from au­to­mo­tive cus­tomers Toy­ota, Honda and Mazda for this year, EP Man­u­fac­tur­ing Bhd (EPMB) is work­ing to sus­tain prof­itabil­ity af­ter a dif­fi­cult 2016.

The au­to­mo­tive sys­tems and com­po­nents man­u­fac­turer posted a net profit of RM276,000 in the first quar­ter ended March 31, com­pared with a net loss of RM3.03 mil­lion in the same quar­ter a year ago.

Rev­enue in­creased 27.9 per cent to RM122.93 mil­lion in the quar­ter from RM96.08 mil­lion pre­vi­ously due to higher sales.

“Last year was dif­fi­cult for us and the Malaysian au­to­mo­tive in­dus­try as the to­tal in­dus­try vol­ume (TIV) shrank by 13 per cent, or 86,550 units.

“As a re­sult, we have to bal­ance the sig­nif­i­cant drop in vol­ume with fixed over­heads and im­pair­ment costs,” said ex­ec­u­tive chair­man Hami­don Ab­dul­lah.

His op­ti­mism is based on the Malaysian Au­to­mo­tive As­so­ci­a­tion’s TIV pro­jec­tion of 590,000 units for this year, or 1.7 per cent growth from last year.

“We will be see­ing the roll-out of sev­eral new ve­hi­cle mod­els in the mar­ket this year, which will spur up­trends in sales.

“In­dus­try ex­perts have also re­ported an in­creased num­ber of hire pur­chase loan ap­pli­ca­tions in the past quar­ter.

“These are in­di­ca­tions that de­mand for new ve­hi­cles could see a grad­ual up­ward trend and we are well poised to meet our cus­tomers’ pro­duc­tion de­mand.

He said while the com­pany still faced un­cer­tain­ties over Proton’s stake takeover by Zhei­jiang Geely Au­to­mo­tive Co Ltd, EPMB hoped that the deal would bring ben­e­fit to the com­pany.

Proton is one of its four key cus­tomers, con­tribut­ing about 20 per cent to EPMB’s to­tal earn­ings.


EP Man­u­fac­tur­ing Bhd ex­ec­u­tive chair­man Hami­don Ab­dul­lah (left) and deputy ex­ec­u­tive chair­man Zulke­fly Ba­harud­din with the com­pany an­nual re­port dur­ing its an­nual gen­eral meet­ing in Kuala Lumpur yes­ter­day.

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