DRB-Hicom narrows Q4 loss to RM328.45mil

Pos boost: Pos Malaysia signage outside the Dayabumi Complex in Kuala Lumpur. The recognition of Pos Malaysia as a subsidiary of DRB-Hicom helps to increase the latter’s revenue. – Bloomberg

PETALING JAYA: DRB-Hicom Bhd has narrowed its net loss for the fourth quarter of financial year 2017 ended March 31, as its top line improved significantly on a year-on-year (yoy) basis.

In a filing with Bursa Malaysia, the firm announced that it has registered a 58.4% yoy lower net loss at RM328.45mil in the fourth quarter, in contrast to a net loss of RM790.76mil recorded a year ago.

DRB-Hicom’s revenue for the fourth quarter rose significantly by 32.2% yoy to RM3.48bil, primarily attributed to higher sales revenue achieved by all of its business divisions and the recognition of revenue of Pos Malaysia as a subsidiary company.

No dividend was announced for the quarter in review. Loss per share stood at 16.99 sen.

As for the full-year results of the financial year 2017, the firm managed to reduce its net loss by 54.2% yoy to RM454.4mil, due to a gain on disposal of its subsidiary company, Corwin Holding Pte Ltd and a one-off exceptional loss on re-measurement of previously held equity interest in Pos Malaysia.

“In addition, the lower net loss for the year is also due to lower losses incurred by Proton Holdings Bhd as well as higher profit contribution from the services sector,” said DRB-Hicom in its filing with the stock exchange.

The firm’s top line for the financial year 2017 declined marginally by 0.9% to RM12.06bil compared with RM12.17bil a year earlier.

Moving forward, DRB-Hicom expects its business performance to improve further in tandem with Malaysia’s economy which continues to gain momentum.

“In line with the economic growth, the group’s overall businesses in the automotive, services and property segments are expected to improve as well. Key businesses such as logistics and aviation will be the key growth drivers for the group.

“In addition, on the back of increasing demand for aircrafts, the group’s composite manufacturing business undertaken by Composite Technology Research Malaysia Sdn Bhd is expected to strengthen further, supported by strong order book.

“Following the signing of the heads of agreement with Zhejiang Geely Holding Group Co Ltd for Geely to acquire 49.9% equity in Proton, the proposed joint venture is expected to create business synergies and opportunities for the group in the automotive sector. A definitive agreement between both parties is expected to be signed in the third quarter of 2017,” said DRB-Hicom.