KUALA LUMPUR (Aug 28): MBM Resources Bhd (KL:MBMR) said its second quarter net profit climbed 30.26% to RM67.64 million from RM51.93 million a year earlier, driven by higher volume in motor trading and assembly and auto parts manufacturing.

Earnings per share for the quarter ended June 30, 2024 (2QFY2024) increased to 17.30 sen from 13.28 sen previously, the group's bourse filing showed.

Revenue increased 5.5% to RM569.25 million from RM539.57 million in 2QFY2023, driven by sustained high demand for Perodua vehicles.

The auto retailer and parts manufacturer declared a first interim dividend of six sen per share, along with a special dividend of 10 sen per share, both to be paid on Sept 26.

This brings total dividend for the first half (1HFY2024) to 16 sen per share, lower than the 26 sen per share paid for 1HFY2023.

MBM Resources said the rise in its quarterly earnings was also due to higher contributions from its joint ventures and associate companies.

“The share of results in the JV posted an increase in profit of RM2.3 million or 48.1% to close at RM6.9 million as the demand from the key market leaders remained strong for the quarter. The share of associates' results was also higher by RM12.2 million or 27.0% as compared to the same quarter last year due to higher production and sales volumes,” said the group.

For 1HFY2024, the group's net profit rose 12.13% to RM147.89 million from RM131.88 million in the previous January-June period, as revenue increased 8.31% to RM1.19 billion from RM1.1 billion.

Looking ahead, MBM Resources said it continues to closely monitor the impact of the fuel subsidy rationalisation on total industry volume, total industry production and the group’s businesses.

“The group remains cautiously optimistic on the outlook, as the improved domestic economic outlook is weighed down by the risk of global macroeconomic headwinds,” it said.

MBM Resources said it has expanded its vehicle portfolio with the addition of a new Jaecoo dealership. Additionally, the group's performance is expected to be bolstered by Perodua's strong order bank.

“Active engagement with customers and prospects including for fleet purchases will be prioritised in addition to the on-going cost management and production efficiency improvement exercise in our auto parts manufacturing division,” it added.

Shares of MBM Resources declined three sen or 0.53% to close at RM5.67 on Wednesday, giving the group a market capitalisation of RM2.22 billion.