BETAMEK RECORDED RM4.9 MILLION PROFIT AFTER TAX IN Q1 FY2025

Company Announces 1.0 Sen Interim Dividend, Committing to Sustainable Growth

KUALA LUMPUR, 25 JULY 2024 – Betamek Berhad ("Betamek" or the "Company"), an Original Design Manufacturer ("ODM") and a leading player in electronics manufacturing services ("EMS”) for the automotive industry, is pleased to announce the financial results for the first quarter ended 30 June 2024 (“Q1 FY2025”). Following the positive financial performance in Q1 FY2025, Betamek also announced a 1.0 sen interim dividend to reward shareholders. The said interim dividend shall be payable on 23 August 2024.

For Q1 FY2025, Betamek reported revenue of RM49.9 million, representing a 15% increase from RM43.5 million in Q1 FY2024. The Company achieved a gross profit of RM8.6 million, up by 8.2% from approximately RM8.0 million in the corresponding quarter of the previous year (“Q1 FY2024”). In conjunction with the increase in revenue, the Profit After Tax (PAT) stood at RM4.9 million, up by 1.8% from RM4.8 million in the same period last year.

Betamek’s PAT increased by 7.7% from RM4.5 million to RM4.9 million, demonstrating enhanced operational efficiency and cost management. Additionally, the gross profit margin improved from 14.9% to 17.2%, a 2.3 percentage point increase, attributed to effective foreign currency hedging transactions and improved supplier price negotiation. Despite a decline in revenue from RM56.0 million to approximately RM50.0 million compared to Q4 FY2024, these strategic measures underscore Betamek’s resilience and proactive financial management.

Encik Muhammad Fauzi Bin Abd Ghani, Executive Director of Betamek commented: "Our positive performance in Q1 FY2025 reflects our resilience and focus amidst evolving market dynamics. Besides, we are also pleased to reward our loyal shareholders with the first interim dividend of 1.0 sen for FY2025. Nevertheless, the strategic initiatives we have implemented are beginning to yield positive results, as evidenced by our improved margins and solid revenue growth. The Malaysia Automotive Association (MAA) has revised its total vehicle sales forecast for 2024 to 765,000 units, up from the previous estimate of 740,000 units. In the first half of 2024, 390,296 vehicles were sold, marking a 6.6% increase compared to the same period in 2023.”

He added: “This growth, driven primarily by a 9.2% rise in the passenger vehicle segment, reflects the resilience and dynamism of the automotive sector. Additionally, the sector saw a significant surge in electric vehicle (EV) sales, more than doubling to 6,617 units in 1H24¹. National auto players saw a market share increase to 37.6%², with notable shifts towards EVs, such as Perodua’s EMO-1. Betamek is well-equipped to support this transition and leverage the positive automotive market trends, reflecting sustained demand in the automotive market."

For Betamek, the acquisition of Sanshin (Malaysia) Sdn. Bhd. ("SMSB") has been completed, marking a pivotal move to diversify Betamek’s customer base and expand its international footprint. SMSB’s established relationships with key automotive manufacturers in Japan, Hong Kong, and Thailand provide Betamek with immediate access to new markets and opportunities. Additionally, the joint venture with Shenzhen Zhonghong Technology Co., Ltd. is gradually gathering pace, aiming to penetrate untapped ASEAN markets and explore new opportunities for the Group, particularly in the areas of Advanced Driver Assistance Systems (ADAS) and smart cockpit solutions. This significantly broadens Betamek's customer base and further cements its market presence.

In conclusion, Betamek remains optimistic about its prospects for the financial year ending 31 March 2025, supported by a robust domestic economy and sustained demand in the automotive market. With the growing EV market share in Malaysia, Betamek, as a leading player in EMS, is optimistic and ready to support the increased demand for electronic components in EVs.

As at 5:00 P.M. 25 July 2024, the share price of Betamek Berhad closed 39.5 sen, representing a market capitalisation of RM177.8 million.