KUALA LUMPUR, May 19 — APM Automotive Holdings Bhd has returned to the black with a net profit of RM14.35 million in the first quarter ended March 31, 2021 (Q1) compared with a net loss of RM6.20 million in the same period last year.
In a filing with Bursa Malaysia today, it said revenue improved 37.2 per cent to RM383.66 million from RM279.54 million previously.
The increase in revenue was mainly due to higher demand from domestic and international original equipment manufacturers (OEM) and replacement equipment manufacturers (REM) customers.
“This was a stark contrast against the group’s performance in Q1 2020, which was severely impacted by the Covid-19 pandemic and strict safety protocols imposed by the government, resulting in no revenue earned for almost 45 to 60 days,” it said.
APM is principally involved in the design, manufacturing, assembly, and production of automotive and mobility components.
On prospects, the group expects to remain on an upward trajectory but the present escalation of major raw material prices such as polyurethane or PU padding chemical, plastic resin, and steel as well as the rise in logistics costs are expected to dampen its progress.
The company’s performance may also be impacted by delays in shipping caused by high volume and port congestion as three factory-to-door delivery times have been pushed to an average of nine weeks compared to four to five weeks from Asia to both the east and west coasts of the US.
“In order to mitigate the impact of the above, the group will look into the sourcing of material from other or alternative suppliers and adjustments to its selling prices. However, the effects of such approach can and will only likely be felt after three months,” it said.
APM Automotive also does not expect full pre-pandemic recovery to occur for at least two to three years but remains optimistic in view of the efforts undertaken by the government and the global community to revive the economy.
Total industry volume is therefore anticipated to remain strong for the remainder of the year.
The company said it would also continue to focus on long-term strategies for business sustainability and continue to strive for greater success expeditiously through mergers, acquisition, strategic partnership, joint- ventures and alliances.
The group’s main operations are located in Malaysia but it also has a presence in various other jurisdictions including the US, Netherlands, Australia, Thailand, Vietnam, Indonesia, and the United Kingdom. — Bernama
Source: Malay Mail
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