MBMR Posts Strong Performance Despite Weak Market Conditions In 2011

24 Feb 2012


Rewards shareholders with bonus issue, announces rights issue with free warrants to fund expansion plan

Kuala Lumpur, February 24, 2012 - MBM Resources Berhad (MBMR), which is aiming to be one of the leading and most complete automotive groups in Malaysia and the region, has announced another record year in revenue in 2011 despite the weak market conditions.

MBMR's revenue for the 12-month period ended 31 December 2011 increased by 14.6 per cent to RM1.75 billion from RM1.53 billion in 2010. This was achieved on the back of a strong second half performance, especially in the fourth quarter which saw the Group's total vehicle sales jumped by 18.8 per cent over the previous quarter, mainly due to higher sales from its Perodua and Volkswagen dealerships.

However, MBMR's profit in 2011 declined by 15 per cent to RM121 million, principally due to the taking in of a one-off cost incurred in the acquisition of automotive safety equipment manufacturer Hirotako Holdings Berhad.

In conjunction with the release of the encouraging results, MBMR has announced a three-for-ten bonus issue to reward its shareholders. The move will increase the Group's share capital base to better reflect the rapidly growing size of its operations.

MBMR has also announced that, for the first time since its public-listing in 1995, it is going to the market to raise funds for its aggressive expansion plan aimed at strengthening its manufacturingcapabilities and enhancing its nationwide retail and service network. For that purpose, it has announced a three-for-ten rights issue with free warrants, which has the potential to raise some RM315 million when fully exercised.

MBMR managing director Looi Kok Loon said that the latest results once again reflected the Group's strong track record of growth despite a weak market and increasingly challenging conditions.

"We believe that we are in a very strong position to maintain our growth trajectory. Our long term expansion plans remain firmly on schedule, with several major investments either already realised or in the process," he said.

In December last year, MBMR's subsidiary, Daihatsu (Malaysia) Sdn Bhd, officially opened a new service centre and upgraded sales facilities for Hino trucks in Shah Alam, which is the largest in Malaysia.

Last month, another subsidiary, Oriental Metal Industries (M) Sdn Bhd, announced a RM103 million investment in a new, OEM-standard alloy wheel manufacturing plant in Rawang. The plant is expected to be commissioned by the end of this year.

This week saw the official launch of a new, state-of-the-art Volkswagen 4S centre in Johor Baru, coming weeks after the opening of the Alor Setar outlet last month. Both are expected to further contribute to the strong performance of MBMR's wholly-owned subsidiary, Federal Auto Holdings Berhad, who is currently the leading Volkswagen dealer in Malaysia under FA Wagen Sdn Bhd.

This year will also see the consolidation of the results of Hirotako Holdings Berhad for the first time, which is expected to contribute positively to MBMR's revenue and profit.

MBMR, which has been synonymous with the Daihatsu brand since its inception, has evolved into a diverse automotive group that represents some of the biggest international brands in Malaysia. They include commercial vehicle brands Daihatsu and Hino; passenger car brands Perodua, Volvo, Volkswagen and Mitsubishi; and sports tuning brands, ABT and HeicoSportiv.

It is the leader in every market segment it competes in, with products that range from light, medium and heavy duty trucks and buses to entry-level compact cars and luxury sports utility vehicles.

By 2015, MBMR plans to become one of the leading and most complete automotive groups in Malaysia with a full spectrum of capabilities that include manufacturing and assembly, distribution, retail and dealerships, parts and accessories, body and paint repair and customer services.




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