DRB-Hicom’s 1Q19 core net loss within expectation
KOTA KINABALU: DRB-Hicom’s first quarter of 2019 (1Q19) core net loss was within analysts’ expectations as they anticipate better quarter ahead.
According to the research arm of Kenanga Investment Bank Bhd (Kenanga Research), DRB-Hicom’s 1Q19 core net loss of RM66.6 million narrowed, compared to a loss of RM182 million in 1Q18, and versus its and consensus RM351 million and RM64 million full-year net profit forecasts, respectively.
“We consider the results to be within our expectation in anticipation of better subsequent quarters,” Kenanga Research said.
Kenanga Research highlighted that Proton’s first sport-utility vehicle (SUV) model, based on Geely’s Boyue platform is on track to roll out in 4Q of current year 2018 (4QCY18).
It further highlighted that the first batch is expected to be Chinabuilt, while the complete knockeddown (CKD) version will come out somewhere in the second half of CY19 (2HCY19).
“Proton is in the midst of finalising a 10-year business road map targeting 30 per cent share of the domestic market and 10 per cent of regional market via introduction of new models.
“Specifically, the group is targeting to expand its products portfolio in the A, B, SUV and MPV segments for their export market.
“A new manufacturing plant in Tanjung Malim will be ready in five years’ time, but the first Proton car made with Geely’s technology will roll out by 2019.
“Geely will facilitate Proton in terms of technology and at the same time assemble its four-wheel drive model, artificial intelligent car and develop their right-hand drive technology in Malaysia known as the Boyue,” the research arm said.