The Board of Directors of DRB-HICOM today announced that the Ordinary Resolution in relation to the Proposed Disposal of Alam Flora Sdn Bhd (“AFSB”) as set out in the Notice of the Extraordinary General Meeting (EGM) dated 26 September 2018 was duly passed by the shareholders of DRB-HICOM at the EGM held today.
DRB-HICOM Berhad also proposed the disposal of ten (10) property assets, total effective equity interest of 70.6% in Horsedale Development Berhad and 100% equity interest and 100% redeemable preference shares in Rebak Island Marina Berhad, to Prisma Dimensi Sdn Bhd and Kelana Ventures Sdn Bhd, for a total disposal consideration of approximately RM1,934.7 million (subject to adjustment) to be satisfied via a freehold land in Johor and cash consideration of approximately RM288.7 million (subject to adjustment) (Proposed Disposals).
On behalf of the Board of Directors of DRB-HICOM, Maybank Investment Bank Berhad wishes to announce that the Ordinary Resolution in relation to the Proposed Disposals as set out in the Notice of the EGM dated 26 September 2018 was duly passed by the shareholders of DRB-HICOM at the EGM held today.
DRB-HICOM Berhad’s (DRB-HICOM, the Group) first quarter results for the quarter ended 30 June 2018 has been announced, with revenue coming in at RM2.65b, leading to a pre-tax loss of RM94.4m for the period.
Revenue for the Automotive Sector came in at RM1.40b, with national carmaker PROTON delivering 6,173 units in June 2018. As with the rest of the industry, all marques under the Group recorded markedly increased sales in June, and have continued to do so in the following months. DRB-HICOM’s Services Sector revenue was recorded at RM1.11b for the period under review, while the Property sector’s revenue for the three-month period amounted to RM142.80m.
DRB-HICOM Berhad (DRB-HICOM, the Group) has returned to profit for the first time in three years, recording a profit before tax (PBT) of RM415.13m on the back of revenue bumping up more than 6% year-on-year (y-o-y) to RM12.79b. Revenue at both the Services and the Property sectors supported the lower sales at the Automotive Sector.
Following the results, DRB-HICOM’s earnings per share (EPS) is stated at 25.78 sen, compared to -23.62 sen a year ago. The Board of Directors recommended a first and final dividend payout of 3 sen per share, subject to approval by shareholders. DRB-HICOM paid out a dividend of 1 sen per share in the previous financial cycle.
DRB-HICOM’s Automotive Sector revenue slipped 7.5% y-o-y to RM7.47b in the 12 months under review. On a quarterly basis, as with the previous quarter, automotive sales continue to dip with total industry volume (TIV) in the period from January to March 2018 coming in at 135,140 units. Compared to the same period in 2017, this represents a slip of more than 4% as the industry continues to grapple with poor loan approvals and a market that adopts a wait-and-see approach to vehicle acquisition.
Revenue at the Group’s Services Sector rose 26.5% y-o-y to RM4.49b, with better performance at Pos Malaysia and Alam Flora driving the growth. E-commerce growth will continue to be a prime driver for the Pos Malaysia, eclipsing revenue from traditional mail. In 2016, globally less people sent traditional mail, with volume dipping 4.2%.
Parcel volumes however rose 7.8% in the same year, and it is expected that 2017 as well as 2018 numbers will mirror this trend.
At the Property Sector, revenue came in at RM824.86m with the sector’s construction projects supporting the performance.
Following the Board of Directors meeting of DRB-HICOM Berhad (DRB-HICOM) held today, we wish to announce the appointment of Dato’ Mohammad Zainal Shaari as Non-Independent Non-Executive Chairman of DRB-HICOM, effective 13 April 2018.
Dato’ Mohammad Zainal, 54, is currently the Managing Director of Tradewinds (M) Berhad, a position he has held since June 2014. Prior to that, he was the Executive Director/Chief Operating Officer of Khazanah Nasional Berhad (Khazanah), the Government’s strategic investment fund, between 2004 and 2013. In the same period, he had served on various boards as a director on Khazanah’s stable of companies, inter alia, Proton Holdings Berhad (2004-2008) and Tenaga Nasional Berhad (2007-2014).
In the preceding years, Dato’ Mohammad Zainal was at PricewaterhouseCoopers Malaysia from 1990 and held various positions at the accounting firm, including taking a two-year stint at its San Francisco office, and was made a partner in 1997 before leaving in 2002. He then joined BinaFikir, a boutique corporate consulting firm, as its Executive Director, before joining Khazanah in October 2004.
Dato’ Mohammad Zainal trained and qualified in the United Kingdom, holding fellow memberships of both the Institute of Chartered Accountants in England & Wales (ICAEW) and the Association of Chartered Certified Accountants (ACCA). Additionally, he is a member of the Malaysian Institute of Accountants (MIA) and the Malaysian Institute of Certified Public Accountants (MICPA). He was appointed by the Minister of Finance as a member of the Financial Reporting Foundation (FRF) and served FRF for two terms.
Pursuant to this appointment, Dato’ Mohammad Zainal is also appointed as the Non-Independent Non-Executive Chairman of Pos Malaysia Berhad, a subsidiary of DRB-HICOM.
DRB-HICOM Berhad (DRB-HICOM, the Group) has announced the disposal of a large portion of its non-industrial property assets and its entire hospitality portfolio as it moves to take advantage of its experience in the development industrial properties. In an announcement to Bursa Malaysia today, the Group says it will dispose several subsidiaries owning some 2,200 acres of land, as well as its entire equity in Horsedale Development Berhad and Rebak Island Marina Berhad to Prisma Dimensi Sdn Bhd (PDSB).
The deal is estimated to be worth RM1.9b, and will be satisfied via a cache of landbank in Johor totalling 1,243.45 acres belonging to PDSB and Kelana Ventures Sdn Bhd (KVSB), and the balance through a cash payment of RM289m.
Group Managing Director, Dato’ Sri Syed Faisal Albar says the transaction will signify a shift in focus for its Properties Sector, aiming to leverage the Group’s vast experience in industrial property development.
DRB-HICOM Berhad (DRB-HICOM, the Group) has announced a 13% year-on-year increase in revenue for the nine months ended 31 December 2017, boosted by improved sales revenue from the Services Sector as well as from the Properties Sector.
For the nine months under review, the Group’s revenue came in at RM9.73b, against RM8.58b in the same nine-month period a year ago. Concurrently, profit before tax (PBT) for the period rose to RM557.8m.
The Automotive Sector’s revenue mirrors the industry’s soft climate, with the anticipated traditional December sales slipping by almost 16% compared to the year before. In December 2017, the industry sold 10,104 units less than the same month in 2016. For the calendar year 2017, the Total Industry Volume slipped by some 3,500 units year-on-year. Lower loan approvals as well as higher interest rates continue to affect sales for the industry.
The third quarter performance was also impacted by a one-off impairment at PROTON, where charges for certain product development costs as well as potential claims related to the same were recognised in the quarter ended 31 December 2017. With the entry of Zhejiang Geely Holding Group (Geely) as a shareholder of PROTON Holdings Berhad (PROTON), the national carmaker intends to deploy Geely’s wide array of technology and family of engines in PROTON’s current range of vehicles, while other models in Geely’s range is also being considered for local consumption.
DRB-HICOM’s Services Sector saw revenue rise by 35% in the nine months to December 2017, coming in at RM3.28b. Again, improved numbers from Pos Malaysia’s courier and logistics segments was a major factor in the performance.
In the nine months ended December 2017, the Group’s Property Sector contributed a revenue of RM638.8m, with the sector’s construction related projects boosting the performance.
DRB-HICOM Berhad (DRB-HICOM) has launched the National Automotive Cluster @ Proton City (NAC) in Tanjong Malim, as it prepares for PROTON Holding Berhad (PROTON) to move its entire operations into Proton City by 2022. The NAC is an area of about 980 acres carved out within the sprawling Proton City development, designed to be an industrial park dedicated for local and foreign automotive vendors. The NAC will be developed by Proton City Development Corporation (PCDC), a wholly-owned subsidiary of DRB-HICOM’s Glenmarie Properties Sdn Bhd. It was launched by Prime Minister Dato’ Sri Haji Mohd Najib Tun Abdul Razak.
The NAC will feature dedicated areas for specific segments of the industry, such as hubs for green technology, electric cars and other tech components of a modern automobile, as well as a road system that can double up as a test track for PROTON.
