Betamek bags Perodua contracts worth RM123.5m

KUALA LUMPUR (Feb 14): Betamek Bhd has secured contracts worth RM123.5 million to supply various electronics parts for a new Perodua model.

In a statement on Tuesday (Feb 14), the electronics manufacturing services (EMS) provider said its unit Betamek Electronics (M) Sdn Bhd on Monday received the letter of appointment from Perusahaan Otomobil Kedua Sdn Bhd (Perodua).

It said the supply of these parts commenced in the fourth quarter of the financial year ending March 31, 2023 (4QFY2023), and is for a duration of six years.

The contracts are expected to contribute positively to earnings of the group over a six-year period, commencing from FY2023, it said.

Betamek managing director Mirzan Mahathir said the company, which provides one-stop EMS solutions to automotive makers, is optimistic that demand for its vehicle audiovisual products and vehicle accessories will continue to grow, given that Perodua, its major customer, continues to see rising demand for its vehicles.

“Our partnership with Perodua spans over two decades, and we are delighted to continue our relationship by supplying our latest technology for the company’s latest vehicle models,” he added.

As of January 2023, Perodua had 220,000 outstanding bookings to be fulfilled.

The car manufacturer recently announced that it is looking to maximise its production to 330,000 units and sales to 314,000 units this year, underpinned by outstanding orders carried forward from last year as well as continued demand for its vehicles so far this year.

The production target is 14.2% higher than Perodua's 2022 tally of 289,054 vehicles produced, while the sales target is 11.3% higher than the 282,019 units sold last year.

Betamek shares settled up 5.5 sen or 10.28% at 59 sen, giving it a market capitalisation of RM265.5 million.