KUALA LUMPUR: Services and property sectors have boosted DRB-HICOM Bhd's earnings for the nine months ended 31 December 31 2017.
The group reversed a net loss of RM127.07 million in the previous nine months to a whopping RM508.71 million net profit.
Group revenue rose 13 per cent year-on-year to RM9.73 billion from RM8.58 billion in the same period last year.
DRB-HICOM said in a statement today that the services sector revenue had risen 35 per cent in the nine months, coming in at RM3.28 billion, with unit Pos Malaysia Bhd’s courier and logistics segments being a major factor.
The group’s property sector contributed a revenue of RM638.8 million, boosted by its construction-related projects.
On the downside, the automotive sector mirrors industry’s soft climate, slipping 16 per cent in sales in December.
The third quarter performance was also impacted by a one-off impairment at Proton Holdings Bhd, where charges for certain product development costs as well as potential claims were recognised in the quarter ended December 31 2017.
DRB-HICOM said with the entry of Zhejiang Geely Holding Group (Geely) as a shareholder of Proton, the national carmaker intends to deploy Geely’s wide array of technology and family of engines in its current range of vehicles, while other models in Geely’s range are also being considered for local consumption.
The group said with the improving economy, it will continue to strengthen its core businesses and pursue various opportunities to expand its business interests, with a key focus on growth in logistics, e-commerce, aerospace and banking.
For the automotive industry, stiff market competition, stringent hire purchase approvals, higher interest rates, among others, remain as challenges, it added.