KUALA LUMPUR (July 24): Electronics manufacturing service provider Betamek Bhd has bagged a RM436.5 million contract to supply various electronic parts for Perusahaan Otomobil Kedua Sdn Bhd’s (Perodua) new car model.

In a statement on Monday (July 24), ACE Market-listed Betamek said its wholly owned subsidiary Betamek Electronics (M) Sdn Bhd had received a letter of intent (LOI) from Perodua. Pursuant to the LOI, the supply of the electronics parts is expected to commence in the fourth quarter of the financial year ending March 31, 2025 (4QFY2025).

The contract, which is for a duration of six years, is expected to contribute positively to the group’s revenue and earnings for FY2025 and throughout the project's period, it added.

Betamek managing director Mirzan Mahathir said demand for the group’s vehicle audiovisual products and vehicle accessories is expected to grow in tandem with increasing demand for its major customer’s vehicles.

“Although the sales tax exemption incentive for passenger vehicles concluded last month, we are confident that demand for our vehicle AV products and vehicle accessories will continue to grow alongside with strong demand for our major customer’s vehicles,” he added.

According to Betamek, Perodua recently announced that it is on track to meet its 330,000 production and 314,000 registration targets this year. As at end-June, Perodua had produced 153,813 vehicles, up 17% from 131,641 units a year earlier.

Betamek posted a net profit of RM4.8 million on revenue of RM43.5 million for 1QFY2024. A total of 77.4% of its revenue was derived from the vehicle audiovisual product segment, with the balance coming from the vehicle accessories segment.

It declared an interim dividend of one sen per share, payable on Aug 18.

At Monday’s noon market break, shares in Betamek finished up one sen or 2.08% at 49 sen each, valuing the group at RM220.5 million.

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