DRB-Hicom posts RM736.6m net profit in Q2 thanks to RM1.1b R&D grant

PETALING JAYA: DRB-Hicom Bhd returned to the black registering a net profit of RM736.6 million for the second quarter ended Sep 30, 2017 against a net loss of RM309.6 million in the previous corresponding period, thanks to the RM1.1 billion research and development grant reimbursement from the government.
The group realised a loss on disposal of Lotus Advance Technologies Sdn Bhd of RM133.19 million, which has been included under other expense in the consolidated statement of comprehensive income for the quarter.
Its revenue jumped 26.4% to RM3.34 billion, compared with RM2.64 billion in the same period last year, mainly contributed by higher revenue from services and property, asset and construction (PAC) sectors.
For the first half of the year, DRB-Hicom reported a net profit of RM566.86 million versus a net loss of RM478.9 million in the same period last year.
This was on the back of a 29.8% rise in revenue from RM5.14 billion to RM6.68 billion, attributed by increased sales revenue across all the business sectors of the group.
On its prospects, DRB-Hicom said the group continues to see improvement in its overall businesses, noting the services sector remains a key contributor to the group driven by rapid expansion in the logistics businesses.
In addition, it said the recent roll-out of the regional logistics hub Digital Free Trade Zone by the government and key collaborations between Pos Malaysia group and major e-commerce players such as Lazada Malaysia, is projected to chalk an upward trajectory for the business and further strengthen the group's services sector.
It said the property sector meanwhile is expected to improve with on-going construction projects.
The board said it expects the group's performance for the financial year ending March 31, 2018 to improve against the previous year's results.
The stock slipped 1 sen or 0.58% to RM1.71 on some 1.3 million shares traded.