Electronics manufacturing services (EMS) provider Betamek Berhad (Betamek) posted 22% rise in net profit to RM5.7 million for the second quarter ended 30 September 2023 (2QFY2024) from RM4.6 million a year earlier.
“This is due to strong demand for its automotive electronics products and components from Perusahaan Otomobil Kedua Sdn Bhd (Perodua),” it said in a statement yesterday (Nov 23).
Earnings per share increased to 1.3 sen from 1.2 sen previously.
Meanwhile, its revenue for the quarter jumped 30.2% to RM63.3 million from RM48.6 million in 2QFY2023, attributed to higher revenue contribution from both vehicle audio and video products and vehicle accessories segments.
“For 2QFY2024, the vehicle audio and video products segment posted solid results with revenue surging 32.5% to RM50.7 million from RM38.3 million a year ago.
“The vehicle accessories segment also recorded an increase of 22.4% to RM12.6 million from RM10.3 million previously,” it said.
For the cumulative six-month ended 30 September 2023 (1HFY2024), Betamek posted a net profit of RM10.5 million, up 17.5% from RM8.9 million previously.
“Revenue for the period under review stood at RM106.8 million, up 12.4% from RM95 million a year ago,” it said.
Betamek managing director Mirzan Mahathir said the increase in the volume of production by Perodua across all of its car models has lifted
the demand for the company’s electronic products and components.
“The Malaysian Automotive Association had in July 2023, revised upwards their forecasted total industry volume for 2023 from 650,000 units to 725,000 units on the back of the strong performance in the automotive industry.
“We do not foresee any slowdown in demand for our electronic products and components from Perodua as it had earlier this month revised their sales volume target from 314,000 vehicles to 325,000 vehicles driven by improved parts supply and healthy demand for its vehicles.
“To support the higher sales volume target, Perodua has also revised its production volume target from 330,000 units to 338,000 units,” he added.
Mirzan said Betamek remains cautious in facing prevailing uncertainties especially on the macro-economic factors which include the weakening of ringgit and other domestic and global economic environment.
“We will continue to monitor the situation and take appropriate measures to safeguard its business and profitability. We are cautiously optimistic of its potential performance for the current financial year,” it added.
Through the Memorandum of Understanding (MoU) signed with Shenzhen Zhonghong Technology Co. Ltd., the Group expects to acquire and develop new technology, technical know-how and access to new resources and customer base which would improve the group’s future
revenue growth.
As at 30 September 2023, Betamek has further grown its net cash position to RM52.5 million after deducting borrowings of RM11.8 million, with net assets of RM0.32 per share.
