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KUALA LUMPUR: Shares of DRB-Hicom advanced in early Friday trade after it reported a strong set of earnings, underpinned by its automotive sector.
At 9.33am, it was up 12 sen to RM2.55. There were 1.92 million shares done.
The FBM KLCI rose 1.63 points to 1,809.23. Turnover was 152.23 million shares valued at RM88.09mil. There were 133 gainers, 150 losers and 210 counters unchanged.
DRB-Hicom’s net profit jumped 71.07% to RM137.97mil for the second quarter to Sept 30, on the back of improving sales of motor vehicles and growth in the services sector.
Earnings per share improved to 7.14 sen from 4.17 sen while revenue increased 3.22% to RM3.65bil.
For the six months period, net profit was up 30.88% to RM148.23mil, while revenue dropped 4.2% to RM6.7bil. The slight drop in revenue was mainly attributed to the different sales mix of vehicles sold during the period in review. For the period, earnings per share increased to 7.67 sen from 5.86 sen.
RHB Research said DRB-Hicom’s results were in line. The automotive business continued to show positive signs of recovery with a third consecutive quarter of relatively stable earnings.
“While there is much more to be done, the introduction of Proton’s Global Small Car (GSC) by mid-2014 will be critical to boost production to 500,000 units by 2017/18. DRB-Hicom remains attractive given the deep underlying value in the assets within the group,” it said.