SHAH ALAM: EP Manufacturing Bhd (EPMB), a Malaysian automotive solutions provider, reported one of its strongest years on record, supported by its venture into the car seat manufacturing business.
EPMB’s net profit for the full year (FY24) was RM18.96 million, a 6.9% decrease from RM20.36 million a year ago (FY23). FY24 revenue was RM594.71 million, down 9% year-on-year due to lower tooling reimbursement payments from customers for the development of new models and products.
EPMB in a statement yesterday said that tooling reimbursement payments are a non-recurring revenue item, representing the customer’s portion of the costs associated with the design and fabrication of new components based on their specifications.
For the fourth quarter of 2024 (Q4’24), EPMB’s net profit more-than-tripled year-on-year to RM9.6 million, mainly due to lower tax provision and deferred tax income during the quarter under review. Q4’24 revenue was RM145.34 million, down 28% year-on-year. The decline was attributed mainly to lower tooling compensation payments, coupled with dip in sales volume for automotive parts and components.
Executive chairman Hamidon Abdullah said: “Our financial and operating performance is a testament to EPMB’s resilience and strategic positioning, amid the evolving automotive landscape and increasing competition from new market entrants. In FY25, we will ascend further up the value chain and expect to see full-year earnings contribution from our vehicle assembly business as we work scrupulously with GWM and BAIC. We are also positioning ourselves to capitalise on significant growth opportunities in the Asean automotive export market. The automotive industry across Malaysia and the broader Asean region is currently undergoing a significant period of transition. We are observing a notable shift in market dynamics, characterised by the increasing prominence and influence of Chinese carmakers, alongside a steadily growing acceptance among consumers in these markets.”
To ensure EPMB’s long-term sustainability, he added the company will continue to be selective in their partnerships with OEMs, focusing on those that align with their strategic goals.
“Our ability to adapt to market changes while maintaining operational excellence is key to our future growth. We are strengthening our supply chain and enhancing our local content to support both domestic and export markets. This approach not only meets regulatory requirements but also positions us to serve the broader Asean market,” said Hamidon.
He added: “There is still much to be done. EPMB remains focused on building a sustainable and profitable business model. We are confident that our proactive approach and strategic positioning will enable us to navigate the changing automotive landscape, while maintaining sustainable growth and delivering value to our shareholders.”
