DRB-Hicom records RM540.1 million profit in 2020 – boosted by Proton, auto business, SST exemption

DRB-Hicom records RM540.1 million profit in 2020 – boosted by Proton, auto business, SST exemption

National vs non-national brands market share, 2001-2020

DRB-Hicom Berhad has announced that it recorded a profit before tax of RM540.1 million for the financial year that ended December 31, 2020. This is on the back of RM13.2 billion revenue, assisted by a moderate business recovery in the second half of last year and the completion of an asset disposal exercise.

As it was the first full year of a revised financial period for the conglomerate, no comparable quarterly or annual figures are available. For Q4 2020, the group’s revenue was RM4.85 billion, with EBIT of RM948.8 million. For both Q4 and FY2020, the majority of DRB-Hicom’s revenue came from the automotive sector.

DRB-Hicom has a 51% share in Proton, which ended last year second in the sales charts. The company also has stakes in the local arms of Honda (the top non-national marque, No.3 overall), Mitsubishi and Isuzu; and has dealerships for Audi, Isuzu, Mitsubishi and Volkswagen.

DRB-Hicom records RM540.1 million profit in 2020 – boosted by Proton, auto business, SST exemption

Sales of Honda, Toyota, Nissan and Mazda in Malaysia, 2011-2020

For the automotive sector, DRB benefited from the government’s decision to declare a sales tax holiday for passenger vehicles. Revenue was RM8.0 billion for FY2020, with Q4 being the best quarter of the year with RM2.6 billion worth of sales, up 3% year-on-year. The services and property sectors contributed RM3.5 billion and RM1.3 billion respectively to the group’s revenue in 2020. DRB-Hicom has now exited the hospitality industry.

Looking ahead to FY2021, the automotive business will continue as a key growth driver for DRB-Hicom. With the extension of sales tax exemption for passenger cars until June 30, the Malaysian Automotive Association is optimistic that the local car market will rebound this year, with projected total industry volume (TIV) rising to 570,000 units (529,434 units in 2020).

DRB-Hicom says that the expected introduction of facelifted variants and aggressive promotional campaigns by various marques under its umbrella will also boost its automotive business this year. If Proton continues its rise (2020 market share was 20.5%, up from 16.6% in 2019 and 11% in 2018, its lowest ever) and Honda prevails against Toyota (controlled by fellow conglomerate UMW) in the non-national duel, DRB-Hicom will have a strong FY2021 to report.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • Jinggo on Feb 25, 2021 at 5:42 pm

    Biar tinggal maruah, jangan tinggal hutang.

    https://paultan.org/2017/05/23/govt-said-to-have-offered-rm1-7-bil-credit-to-proton/

    Like or Dislike: Thumb up 13 Thumb down 1
    • yawnz on Feb 25, 2021 at 5:58 pm

      https://paultan.org/2018/10/10/proton-invests-rm1-2-billion-for-production-of-new-x70-and-next-gen-models/

      Paid back dy….

      Like or Dislike: Thumb up 13 Thumb down 3
  • Jaguh Global on Feb 25, 2021 at 5:44 pm

    Shows that Proton can compete openly without protection, finally MITI MOF can slowly remove car excise duties taxes.

    Like or Dislike: Thumb up 2 Thumb down 1
    • Kim Jong Din on Feb 25, 2021 at 9:33 pm

      Car taxes from day Protong started to near bankruptcy ,even after White Knight Geely came…there is no sign of any downtrend.
      It wont happen.10-12 Billion Rm in car taxes is at stake.

      Like or Dislike: Thumb up 2 Thumb down 0
    • Crony on Feb 26, 2021 at 12:22 am

      Profits are privatized while Losses are socialized. Tengkiu caring gomen terbest!

      Like or Dislike: Thumb up 7 Thumb down 2
  • You know what? They have profit of $540mil but $863mil was from gain from disposal of property assets & investment. :)

    Like or Dislike: Thumb up 0 Thumb down 1
  • myNewToy on Feb 26, 2021 at 10:25 am

    Terima Kasih Malaysia to receive X70 and X50 for the best national cars ever.

    Like or Dislike: Thumb up 1 Thumb down 0
  • Superstitions on Feb 27, 2021 at 10:35 pm

    R u sure DRB still have 51% share in Proton???? Come on? Don’t lie

    Like or Dislike: Thumb up 0 Thumb down 1
    • Then what do u think is DRB share in Proton? Show the proof, please

      Like or Dislike: Thumb up 0 Thumb down 0
 

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