DRB-Hicom Q4 net loss narrows

PETALING JAYA: DRB-Hicom Bhd, which has secured China’s Zhejiang Geely Holding Group Co Ltd as the foreign strategic partner for its automotive arm Proton Holdings Bhd, incurred a narrowed net loss of RM328.45 million for the fourth quarter ended March 31, 2017 against RM790.76 million in the previous corresponding period.

It was due to gain on disposal of a subsidiary Corwin Holding Ptd Ltd, one-off exceptional loss on re-measurement of previously held equity interest in Pos Malaysia, lower losses incurred by Proton Holdings and higher profit contribution from the services sector.

DRB-Hicom’s revenue for the quarter under review soared 32.2% from RM2.63 billion to RM3.48 billion.

The group expects its financial performance ending March 31, 2018 to improve as the economic activities continue to gain momentum.

It noted that key businesses such as logistics and aviation will be the key growth drivers for the group.

“Rapid expansion in e-commerce is expected to chalk an upward trajectory for postal and logistics businesses undertaken by Pos Malaysia group,” it said.

Meanwhile, given the increasing demand for aircraft, DRB-Hicom’s composite manufacturing business undertaken by Composite Technology Research Malaysia Sdn Bhd is expected to strengthen further, supported by strong order book.

The group also said its agreement with Geely is expected to create business synergies and opportunities for its automotive sector.

DRB-Hicom’s full-year net loss stood at RM454.4 million versus RM992.76 million a year ago on the back of a 0.9% drop from RM12.17 billion to RM12.06 billion.