DRB-HICOM BHD Reports Significant Decline in Q1 Net Profit

Kuala Lumpur, May 22, 2025 — DRB-HICOM Bhd, a leading Malaysian multinational conglomerate, has reported a substantial 80.6% year-on-year decline in its first-quarter net profit for 2025. The company’s net profit fell to RM17.72 million from RM91.54 million in the same period last year, as disclosed in its latest bourse filing. This downturn is primarily attributed to lower sales and increased costs across its automotive, postal, and property segments.

Financial Performance Overview

The conglomerate’s revenue for the quarter ending March 31, 2025, decreased by 5.1% year-on-year to RM4.11 billion, down from RM4.33 billion. The automotive division, which includes its 50.1%-owned Proton Holdings Bhd, saw a 6.1% drop in sales to RM2.8 billion, driven by a decline in Proton vehicle sales and reduced revenue from manufacturing and engineering operations. The property segment experienced a significant 41% fall in revenue, amounting to RM46.6 million, while postal revenue dipped slightly by 0.7% to RM457.1 million.

Despite these challenges, DRB-HICOM’s banking and services segments provided some relief. The banking division reported a 4.4% increase in revenue to RM510.41 million, buoyed by higher financing income and an expanding customer base. The services segment also saw an 8% rise in revenue, thanks to increased commercial vehicle inspection volumes.

Strategic Initiatives and Outlook

In response to the financial setbacks, DRB-HICOM is doubling down on its digital transformation initiatives, particularly within its banking and postal services. The company aims to enhance operational efficiency and resilience through these efforts. Additionally, it is focusing on strengthening the business fundamentals in its aerospace and defence, services, and properties segments to support long-term sustainability.

Looking ahead, DRB-HICOM anticipates a moderate outlook for the financial year ending December 31, 2025. The company has decided not to declare any interim dividend for the quarter, reflecting its cautious approach in navigating the current economic landscape.

Market Position and Future Prospects

As of May 20, 2025, DRB-HICOM’s share price stood at MYR 0.825, with a market capitalization of MYR 1,594,920,000. The company’s price-to-earnings ratio is currently 70.72, indicating a premium valuation relative to its earnings. Despite the recent financial challenges, DRB-HICOM’s strategic focus on innovation and digital transformation positions it well to capitalize on future growth opportunities across its diverse sectors.

In conclusion, while DRB-HICOM faces significant headwinds in the short term, its commitment to digital transformation and strategic realignment across key business areas suggests a resilient path forward. Investors and stakeholders will be closely monitoring the company’s progress as it navigates the evolving market dynamics.