Myvi and Viva to fuel MBM Resources growth

KUALA LUMPUR: MBM Resources Bhd expects a better performance this year on strong demand for the newly-launched Perodua Viva.

Perusahaan Otomobil Kedua Sdn Bhd’s (Perodua) Myvi and Viva would be MBM’s growth driver this year, managing director Looi Kok Loon said.

“The group profit’s profile has 65% exposure to Perodua’s operations, including via the automotive manufacturing which supplies parts to Perodua,” he said after the company AGM yesterday.

MBM has a 23.5% stake in the second national carmaker, which sold 11% more cars last year than in 2005 despite a contracted total industry volume.

For the financial year ended Dec 31, 2006, MBM achieved RM121.9mil in pre-tax profit on RM1.13bil revenue.

On MBM’s 86%-owned subsidiary Federal Auto Holdings Bhd, Looi said he expected the forthcoming launch of the Volvo S80 premium sedan to have a strong impact on the local luxury car market.

“This year, with the much-needed new model, we will be able to better position ourselves in the luxury segment.

“Volvo cars, which used to enjoy up to 20% share of the luxury car market, currently has below 10% share,” he said, adding that sales of Volvo cars had improved since the first quarter of this year. 

MBM’s 71.5%-owned subsidiary Daihatsu (M) Sdn Bhd planned to introduce two new models this year. The Daihatsu light trucks dealer currently commanded 40% market share in this segment, he said.

Looi said the current exchange rate environment – the stronger ringgit against the yen and greenback – was favourable to the group. He said: “It helps us push up our margin amid the competitive market.”

On the outlook for car sales, Looi said if the market improved in next nine months, the gain would only be able to offset the shortfall in the sector during the first quarter.

For the first three months ended March 31, MBM posted a lower net profit of RM18.74mil from RM21.97mil in the previous corresponding period.

Revenue dipped 6% to RM253.41mil from RM271.3mil previously.