PETALING JAYA: DRB-Hicom Bhd
will continue sharpening its competitive edge across its core segments by scaling energy-efficient mobility, driving high-value manufacturing, accelerating digital adoption and improving efficiency across all business segments.
Group managing director Tan Sri Syed Faisal Albar noted that recent geopolitical developments in the Middle East, including the ongoing Iran conflict, have heightened global uncertainty.
“Recognising the potential impact of the latest conflicts in the Middle East, the group continues to monitor developments closely and has put in place mitigating measures where appropriate,” he said in the company’s annual report.
Syed Faisal acknowledged that the global economy is expected to be impacted by higher energy costs, supply chain disruptions, currency volatility and softer demand in certain markets.
He added that the national transition towards energy-efficient mobility, advanced manufacturing and a more sustainable economic structure is expected to unlock opportunities across the electric vehicle value chain – from manufacturing and engineering to logistics, financial services and infrastructure development.
“Policies such as the National Automotive Policy 2020, National Energy Policy 2022–2040 and the Low Carbon Mobility Blueprint 2021-2030 are central to driving this shift.”
Meanwhile, an analyst said DRB-Hicom’s business outlook remains moderately positive, underpinned by stronger momentum at Proton, improving contributions from Bank Muamalat and expansion in its aerospace segment.
“We believe the group stands to benefit from Proton’s resilient vehicle demand and ongoing electric vehicle initiatives, while recurring earnings from its banking operations continue to provide stability.”
He highlighted that the group is expected to face challenges from intensifying competition in Malaysia’s automotive sector, particularly from Chinese marques, which could pressure margins and sales volumes.
“Meanwhile, recovery efforts at Pos Malaysia are showing gradual improvement, although the segment continues to weigh on overall performance.”
DRB-Hicom saw its net profit for the first quarter ended March 31, 2026 (1Q26), more than double to RM45mil from RM17.72mil in the corresponding quarter a year earlier, while revenue rose 15.7% to RM4.76bil from RM4.11bil.
By segment, revenue from the mobility division increased 19.6% to RM3.62bil in the quarter under review, primarily driven by higher Proton sales volumes and stronger contributions from the aerospace business following the acquisition of CTRM AeroSystems in December 2025, the group said in a statement last month.
“This was partially offset by lower revenue from the manufacturing and engineering and automotive distribution businesses,” DRB-Hicom said in a Bursa Malaysia filing on its 1Q26 financial performance.
Revenue from the banking segment rose 9.4% to RM583.36mil in 1Q26, mainly driven by higher financing income, supported by financing volume growth and an expanding customer base.
The postal segment’s revenue improved by 7.9% to RM493.25mil, supported by higher courier volumes, stronger logistics contributions and increased aviation activities, including in-flight catering and ground handling.
“The services division’s revenue, meanwhile, stood at RM50.73mil, reflecting lower inspection volumes in the vehicle inspection business following the festive public holidays during the quarter,” it said.
Revenue from the properties division amounted to RM13.89mil, reflecting lower contributions from property development and construction projects, DRB-Hicom added.
