Proton Updates: Q3 Profitable

Proton Holdings Bhd reported a net profit of RM86.51 million in Q3 which ended on December 31 2005, thanks to higher car sales and lower debt provisions. This is good, compared to the RM154.33 loss in Q2, but still 38.61% lower than the RM140.92 million profit in Q3 of the previous year.

Sales increase was 22%, and revenue increase was 19% compared to the previous quarter. October sales was an all-time high of 22,971 units and total sales for Q3 was 52,418 units. This was up from 42,800 units in Q2. Proton MD Syed Zainal also said Proton has been using measures to bring costs down which included sourcing components globally, renegotiations with vendors and improved electronic procurement systems.

Proton’s future plans included increasing it’s market share in East Malaysia where it only has 25%, however in the industry as a whole it is the market leader at 40%. East Malaysia’s rough terrains are probably why Protons do not sell there, everyone’s driving 4WDs instead.

As for the international markets, Proton is also close to finalising a collaboration for car assembly in China, is seeking for a new partnership in India, and has just launched the new Proton Savvy in a few countries including Australia, the UK, and Brunei.

Proton Holdings Bhd (5304.KU) – Malaysia
3rd quarter ended Dec. 31:
Figures are in Ringgit (MYR). [Source]

  2005 2004
Revenue MYR2,153,895,000 MYR2,102,121,000
Pretax Profit 96,049,000 175,159,000
Net Profit 86,512,000 140,924,000
Earnings Per Share 15.80 Sen 25.70 Sen
Dividend Omitted Omitted
9 months ended Dec. 31:
Revenue 6,012,726,000 6,251,776,000
Pretax Profit (67,079,000) 614,406,000
Net Profit (80,174,000) 506,308,000
Earnings Per Share (14.60 Sen) 92.20 Sen
Dividend Omitted 15.00 Sen

Sources: Reuters, Dow Jones, Bernama

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After dabbling for years in the IT industry, Paul Tan initially began this site as a general blog covering various topics of personal interest. With an increasing number of readers paying rapt attention to the motoring stories, one thing led to another and the rest, as they say, is history.

 

Comments

  • Initial D (Member) on Feb 28, 2006 at 4:15 pm

    nothing to say, petrol alrdy giving much problem liao.

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  • edwin2 (Member) on Feb 28, 2006 at 5:45 pm

    short term goal met…. what are your long term goal…. continue selling ISWARA facelif, protection from government, increase $$.

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  • Driven2020 (Member) on Feb 28, 2006 at 7:45 pm

    Just for info ppl dun just buy 4WD in East Malaysia due to rough terrains. They even have Porsches and Ferarris There. The road tax structure for 4WD in East Malaysia is different than West Malaysia.

    There are loads of Protons running around in East Malaysia but proton's image in East Malaysia is not very good.

    No doubt the road condition in East Malaysia is not as par as West Malaysia. But through experience Proton cars when new drives like a dream but after a year, their parts will start loosen and rattle like crazyif not maintained properly; nightmare.

    I'm not sure about West Malaysia side. Probably due to better road conditions the rattles dun come as soon as East Malaysia lol~.

    My observation is that I dun see that much of Savvys and Gen2 in East Malaysia. People with lower income bracket whom need personal transportation can only afford Proton Iswara coz of 0% downpayment with 9 years replayment scheme. But LPPL after 9 years they will be paying ridiculous amount alot more than what the initial cost of the car were.

    I dun think P1 will be able to maintain this level of profit if without the Iswara as the low cost cash cow.

    P1 has always been using existing platforms to build their cars.

    Iswara/Saga = 80'S lancer

    Wira = 90's Lancer

    perdana = eterna

    gen2 = 90's renault megane hatch

    tiara = 90's citroen ax

    etc etc

    if using existing platform should be cheaper on the production right? but still pricey for me for local made cars..

    Say the government not protecting p1. y not just give them money instead? its another way of saying lol~

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  • catborg (Member) on Feb 28, 2006 at 7:45 pm

    iswara is CHEAP.. no matter what, peoples still lookin their pockect..

    what the hell is QUALITY and OLD TECH?.

    Dont blame proton, blame poor citizen :D ..

    as long as i can sell, i will!.

    Even Yamaha TZM (1996) and RXZ exist since 1995 = Still can sell like hotcake now! What else you can say?..

    Anyway Proton, just dont forget to produce more new model this year.. Exspecially MPV.. or Die-lah!

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  • SM4 (Member) on Feb 28, 2006 at 7:46 pm

    Increased sales volume is actually due to "Jualan Murah". Are we going to have sales carnival forever?? Sooner or later people with get fed up with the quality if it is not improved. By the way, is there any H2O powered car ar?

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  • Sharfox (Member) on Feb 28, 2006 at 8:02 pm

    Allo Driven2020,

    Get the fact accurately. From where did U get 'fact' that the Gen.2 is built on Renault Megane platform?….. Wont say much about the rest…. kinda agree with you.

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  • HatukNgkau (Member) on Feb 28, 2006 at 8:56 pm

    Proton profitable? BWAHAHAHAHAA!!!

    nay, they just happen to baru employ some very, very smart accountants…

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  • E-Nabill (Member) on Feb 28, 2006 at 9:47 pm

    thy make profit u guys all make noise,thy make losses thn all hell break loose ! anyway its improvment,thy lost 1xxmilion last quarter,n now thy r back to profits,its not their fault that thy are selling iswara/saga,y stop wen thr r so many buyers,the juara didnt sel so thy stoped it , i guess its easy to hate proton , bt gota give som credit….so bashers out thr..ur welcome to unleash!

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  • catborg (Member) on Feb 28, 2006 at 10:05 pm

    hatukngkau = bila la nak insaf. :D

    or basher still be basher sampai mati? ..

    For the time being, proton new management done wll.. at least.. perhaps.

    or the short term the recovery from WORST is ok.. Now let see f he had or not the Very Long Time Plan.. :D

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  • cavino (Member) on Feb 28, 2006 at 10:10 pm

    Mentioned that the pricing of petrol now is nearer to global market. Can deny that but the problem is car price is way way above global market. If car price cheap, we could have bought Civic Hybrid and Prius at the price of City and VIOS. Would that not help much more to save fuel?

    However there is no doubt that Proton is one of the main cause for the ultra expensive "budget car" like City and VIOS (FC of City iDSI at 1.5cc => 1.3cc manual Iswara) . So it IS easy to blame them.

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  • marmitecrab (Member) on Feb 28, 2006 at 10:20 pm

    catborg,

    Actually, RX-Z available since 80's. I used to ride a second hand one to school in the 80's.

    Still going strong now. But only because it's well-made and reliable. Can't say the same about cars and Proton in particular.

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  • Ajis (Member) on Feb 28, 2006 at 10:41 pm

    i love to drive my 1995 iswara…. it's more reliable than the newer models…

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  • Driven2020 (Member) on Feb 28, 2006 at 10:56 pm

    Sharfox said,

    February 28, 2006 @ 12:02 pm

    Allo Driven2020,

    Get the fact accurately. From where did U get ‘fact’ that the Gen.2 is built on Renault Megane platform?….. Wont say much about the rest…. kinda agree with you.

    ________________________________________________________________

    Here u go: Just look at the outer features carefully especially the windows and wheel arches loooo..the rest the usual stufflah go to plastic surgeon get some cosmetic changes…

    http://www.top-autobazar.cz/gallery/1119612323-au…

    http://www.carpages.co.uk/proton/proton_images/ge…

    http://www.drivein24.ch/fotoauto/Renault/Renault%…

    If u are curious u can print the picture and compare it to an actual gen2 model or something.

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  • whatsoever (Member) on Feb 28, 2006 at 11:03 pm

    profitable or not is none of the most peoples issue. the bottom line is don't ask petronas to invest more money on proton.

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  • HatukNgkau (Member) on Feb 28, 2006 at 11:42 pm

    catborg said,

    February 28, 2006 @ 2:05 pm

    hatukngkau = bila la nak insaf.

    or basher still be basher sampai mati? ..

    =============================================

    catborg, my statement above are purely a joke, if u can read between the lines…

    plus there is no wrong in bashing Proton for problems it has caused me in my previous postings. after all, u're not the one facing MY problems so i dont think there is a need for u to me MY moral guardian..

    i'm not interested in making enemies with anyone so pls stop ur personal attacks… it's been a very peaceful times in here since the leaving of the spamming duo. let's keep it at that.

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  • honda_driver (Member) on Mar 01, 2006 at 12:34 am

    whatsoever, did petronas actually invest money in Proton?? just curious.

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  • honda_driver (Member) on Mar 01, 2006 at 12:52 am

    Driven2020, you are amazing. All you did was compare a photo of a megane, and a gen2, and concluded 100% that the gen2 is using a renault platform. Please get your facts right before opening yourself up to criticism.

    the gen2 uses the exact same platform as the waja. The waja uses a reengineered platform derived from the mitsubishi carisma/volvo S40. The savvy uses a brand new platform built by proton and is the only car in the world currently using it. Contrary to popular belief, the savvy does not use a renault clio platform, only the engine.

    do you actually know how many car companies share platforms today? There are easily up to 5-6 different models in the market, under 3 or 4 different brands sharing the one same platform.

    anyways.. proton doing well should be good news for all of us. The fact is, the govt. will never give up on proton, so hoping they will close down tommorow is not going to happen. The quicker proton improves and grows, the better the chances for the local car industry to move to an even playing field, which will be good news for us. Regardless of what they sell, as long as they're not losing money, the govt doesnt have to pump in any money. good news again for us.

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  • Tracks (Member) on Mar 01, 2006 at 2:16 am

    Proton just announced that they are back in the black but for how long. New models coming out too slowly and released in a stupid manner. Worst launched is Savvy with its ridiculous advertisment. But the stupidest thing is to launch a new car without the 3 "A"s; Automatic gearbox, ABS and Airbags.

    I am guessing that Proton is going to repeat the same mistake with SRM launch schedule in May 2006. Hopefully they prove me wrong for their benefit.

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  • HatukNgkau (Member) on Mar 01, 2006 at 5:06 am

    wait n see… wait n see…

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  • PGlang (Member) on Mar 01, 2006 at 6:35 am

    Well..well..well..I really don't want to make anymore contribution to poton 1 which suck our hard earned $$$

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  • thetruth12 (Member) on Mar 01, 2006 at 6:45 am

    no need to seelah y i was wondering with higher sales yet making net loses a differences of 400million during TM time even got rid of Agusta bikes as well. Anyone can figure out ? pls ring some bells. i guess i'm tired of this nonsense guess u guys r not doing very good making the TMs looks bad more like they themselve the current mngmnt looks bad…politic kills the proton ! How much is the reserve funds in proton during the tm time and the current time if anyone can get some facts on this then we all know what is going onlah…??? lol 5 years old pun susah nak tipu ni.

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  • Initial D (Member) on Mar 01, 2006 at 7:45 pm

    aiyo, when they get profit, some pl bising, say tipu la, accountant cheat la, wat la ., blah blah blah……….

    when they in red, some ppl say aiyoh so terrible, should tapao liao, management's bad, blah blah blah…….

    if those ppl duno how to give credit or praise, shut up when u read this post. duno how those ppl always can find a way to shoot down proton.

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  • pendek (Member) on Mar 01, 2006 at 7:47 pm

    (out of topic)

    hey don't compared RXZ to proton's pls…

    coz its not something like a retro machine, its a beast in the city, eventho yahama come out with the new 125Z cub, still the legacy still can't be compared to legendary RXZ.

    that's how you produce vehicles.

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  • catborg (Member) on Mar 01, 2006 at 10:40 pm

    125Z is new? bullshit.. 125Z exist in 1999 you know!

    it's all about malaysian those still buying even it's an OLD model.

    im not comparing RXZ with proton.. but almost malaysian look into their pocket.. not look into new model and new tech!..

    it's all about CHEAP!

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  • Driven2020 (Member) on Mar 01, 2006 at 10:54 pm

    honda_driver, sharing common platform of course is not new. Like Honda Stream & Toyota Wish both using the same platform. At least the platforms are new.

    Oklah I agree I'm putting myself on potential criticism. If my dribbles sound bashy I take everything back.

    Then I will put it this way, I've noticed similarities but its not conclusive enough to say Gen2 is based on 95' Renault Megane.

    http://static.paultan.org/white_gen2_s.jpg

    http://www.cardomain.com/member_pages/show_image….

    http://www.carfolio.com/specifications/models/car…

    http://www.carfolio.com/specifications/models/car…

    Can anyone please tell is this a form of bashing? If like still is then no point posting this at the first place.

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  • dzulx (Member) on Mar 02, 2006 at 12:51 am

    Way to go proton. But lot of things to improve!!

    Higher quality please!! I have test drive gen2 before.

    Handling is superb for stock car. Even better compare to my car, accord euro-r.

    Not so comfortable though. But quality poor.. Everything tercabut cabut..

    What a waste.. such a nice car, design, handiling etc.. buat quality bad. everything look too plastic..

    Hopefully new CEO will listen to customer's voice. He is a businessman. Hope he can perform.

    Anyway i always hoping petronas and proton can cooperate. petronas engine is an example of proton's stupidity and arrogance. Come on, 2 government own company not cooperating.. Rugi besar

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  • mycar_stolen (Member) on Mar 02, 2006 at 1:03 am

    RXZ is not cheap what, if Msian always looking for their pocket they will only buys those china make photocopy bikes, price around 2k.Yamaha RXZ is reliable motorbike, people have trust in it, you buy one you wont regret you buy twice in space of 10 years also you wont regret, you buy one later you give to your younger bro also he will like it.Please dont compare Yamaha RXZ with Proton.Proton is one thing that a turn off for Msia it is like our national soccer team, it is like a tumor and killing us.

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  • pendek (Member) on Mar 02, 2006 at 11:10 pm

    i didn't mean 125Z is new models. its a replacement for RXZ.

    and yes, RXZ sales is not based on thier price…..

    the way i see this, people will keep on buying iswara, not because its cheap

    but its does deliver its purpose.

    and like ajis said, he love his 95's iswara, just like me (96's). Iswara cater for its own market segment.

    and obviously the lower income type choose iswara because it can deliver all thier need. work, sent children to school, balik kampung, tak kena hujan. blah blah…

    when the middle income group who do not wish to spent money on cars choose iswara, they felt disapointed, if they choose to toying with thier 2nd car, don't choose local budgect car. choose japanese makes.

    with local's don't expect to be shifting at 7K rpm and doughnut spin without all the part bergegar like osim chair after that,

    for models like GEN 2 and Waja, i never try to trash those before, so i can't complaint whether if they can hold or not.

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