MBMR EYES PERIOD OF STEADY, SUSTAINABLE GROWTH,
CONSISTENT RETURNS TO SHAREHOLDERS
Five-year annual average shareholdersâ€™ return of 19.1%
dwarfs KLCIâ€™s 9.8%
Subang, June 16, 2015 â€“ MBM Resources Berhad (MBMR) is confident that it isÂ entering into a period of steady and sustainable growth that will see the company delivering consistent returns to shareholders moving forward.
The companyâ€™s five-year annual average shareholdersâ€™ return of 19.1 per cent farÂ surpasses the Kuala Lumpur Composite Indexâ€™s 9.8 per cent1.Â
MBMRâ€™s new investments, which involved significant capital expenditure but wereÂ strategically necessary to secure the companyâ€™s future, were now ready to take off after a period of gestation in the previous year.
These included capacity expansion of OMI Alloy (M) Sdn Bhdâ€™s alloy wheelÂ manufacturing plant in Rawang, further network expansion to tap into the lucrative vehicle aftersales service market and commencement of distributorship for IvecoÂ commercial vehicles.
For the 12-month period ended December 31, 2014, MBMR recorded revenues ofÂ RM1,774.1 million, down 9.5 per cent. Profit before tax was RM132.2 million, down 14.9 per cent from the previous year, mainly due to start-up costs from newÂ investments.
MBMR could take heart that its existing businesses continued to perform well withÂ profit before tax growing by 7 per cent in 2014 to RM183.9 million from RM171.8 million in the previous year.
MBMR group managing director Looi Kok Loon said that the company expected toÂ see meaningful contributions from the new investments from this year onwards. â€œFor example, our decision to add capacity by upgrading existing service centresÂ meant that we were able to tap into the aftersales business, which continues to be highly lucrative recurring income generator. It also helped us diversify our incomeÂ stream by lessening the dependence on vehicle sales,â€ he said.
In 2014, MBMRâ€™s 46-branch network recorded an 11 per cent increase in serviceÂ centre throughput although vehicle sales declined by six per cent.
Mr Looi pointed out that the automotive parts manufacturing division wouldÂ continue to play a key role in driving MBMRâ€™s growth.
Rising domestic vehicle production and advancing safety standards have benefitedÂ MBMRâ€™s subsidiaries such as steel wheel producer Oriental Metal Industries (M) Sdn Bhd and alloy wheel manufacturer, OMI Alloy.
OMI Alloyâ€™s production this year was expected to grow by six fold to an estimatedÂ 200,000 units due to rising demand for alloy wheels in the country and new orders from vehicle manufacturers.
Jointly-controlled entity Autoliv Hirotako Sdn Bhd (AHSB), the specialist in safetyÂ restraint systems, continued to be the market leader in seatbelts and airbags supply. The company is well-poised to capture growth opportunities from currentÂ products and the development of new products to meet higher levels of vehicle safety.
Looi added, â€œWe are proud to welcome yet another top brand to our portfolio. Â Iveco, based in Turin, Italy, is a global manufacturer with a wide range of light, medium and heavy commercial vehicles, off-road trucks, and vehicles for specialÂ applications. We are confident that Iveco will soon be a major player in the commercial vehicle segment here in Malaysia.â€ Ends.
1Â 2015 Bloomberg Finance L P
ABOUT MBM RESOURCES BERHAD
MBMR is a diverse automotive group that represents some of the biggest internationalÂ brands in Malaysia. They include commercial vehicle brands Daihatsu, HINO and Iveco;Â passenger car brands Perodua, Volvo, Volkswagen and Mitsubishi; and sports tuning brands,Â ABT and HeicoSportiv, and car-care brand Williams.
MBMR is the leader in every market segment it competes in, with products that range fromÂ light, medium and heavy duty trucks and buses to entry-level compact cars and luxuryÂ vehicles.
MBMR aspires to be one of the leading and most complete automotive groups in MalaysiaÂ with a full spectrum of capabilities that include manufacturing and assembly, distribution,Â retail and dealerships, parts and accessories, body and paint repair and customer services.
For more information on MBM Resources Berhad, please visit www.mbmr.com.my.