Electronics manufacturing services (EMS) provider Betamek Berhad’s (Betamek) net profit for the third quarter ended 31 December 2023 (3QFY2024) surged over twofold to RM5.1 million from RM1.7 million a year earlier, on strong demand for its automotive electronics products and components from Perusahaan Otomobil Kedua Sdn Bhd (PERODUA).
As a result, earnings per share came in higher at 1.1 sen for 3QFY2024 compared with 0.4 sen for 3QFY2023.
Quarterly revenue rose 8.2% to RM59.2 million in 3QFY2024 versus RM54.7 million previously on the back of higher revenue contribution from both vehicle audio and video (AV) products and vehicle accessories segments.
For 3QFY2024, the vehicle AV products segment recorded an increase of 4.9% to RM45. million from RM43.7 million a year ago due to increase in the volume of production by PERODUA across all of its car models. The vehicle accessories segment also recorded an increase of 21.3% to RM13.4 million from RM11.0 million previously.
Betamek declared a second interim single tier dividend of 2.0 sen per share for the financial year ending 31 March 2024 with an entitlement date of 9 February, to be paid on 23 February.
The strong quarterly performance lifted Betamek’s net profit for the cumulative nine months ended 31 December 2023 (9MFY2024) by 46.8% to RM15.5 million from RM10.6 million a year earlier, while revenue grew 10.9% to RM166.0 million in 9MFY2024 from RM149.8 million in 9MFY2023.
As at 31 December 2023, Betamek has further grown its net cash position to RM52.3 million after deducting borrowings of RM11.5 million, with net assets of RM0.33 per share.
Commenting on the financial results, Betamek Executive Director Fauzi Ghani said the Company 3QFY2024 and 9MFY2024 profits have also improved significantly due to the Company’s better control of the administrative and operating expenses.
On prospects, Fauzi is confident that the demand for the Company’s vehicle AV products and vehicle accessories will continue to grow in tandem with the growing demand for its major customer’s vehicles.
The Malaysian Automotive Association (MAA) had on 16 January 2024, announced another record year in 2023 with sales at an all-time high of 799,731 units total industry volume (TIV) which was 11% higher than the previous record set in 2022. MAA however expected the TIV to be moderated to 740,000 units for 2024 due to uncertain outlook on the global economy as a result of the ongoing geo-political tensions.
“With the lower TIV numbers forecasted by MAA, Betamek remains cautious in facing prevailing uncertainties especially on the macro-economic factors which include the relative performance of Malaysian Ringgit against the United State Dollars and other domestic and global economic environment.
“The Group will continue to monitor the situation and take appropriate measures to safeguard its business and profitability. In views of the above, Betamek is cautiously optimistic of its potential performance for the current and the succeeding financial year,” he added.
Betamek has declared RM15.8 million in dividends since its listing in October 2022. The Group will continue to improve its operating performance while in the scout of new opportunities to add value to shareholders.
