3QFY25 CNP stood at RM89.0m (+1.9% YoY, +22.7% QoQ), bringing the 9MFY25 CNP to RM232.9m (-1.0% YoY). The results were in line with expectations.
The Group declared a second interim dividend of 7.0sen and a special dividend of 10.0sen, totalling 17.0sen for the quarter (3QFY24: 29.0 sen)
We expect MBMR to deliver resilient earnings into FY25, underpinned by sustained Perodua sales momentum.
Maintain BUY with an unchanged TP of RM6.30, based on 8.0x FY26F EPS of 78.7sen.
Results within expectations. Excluding the gain on disposal of assets (-RM5.7m) and other exceptional items (+RM0.3m), 3QFY25 core net profit (CNP) came in at RM89.0m (+1.9% YoY, +22.7% QoQ), bringing 9MFY25 CNP to RM232.9m (-1.0% YoY). The results were within expectations, accounting for 76% of our full-year forecast and 77% of consensus estimates.
Dividend decreased. The Group declared a second interim dividend of 7.0sen and a special dividend of 10.0sen, totalling 17.0sen for the quarter (3QFY24: 29.0 sen).
QoQ. 3QFY25 CNP rose 22.7% QoQ, driven by stronger contributions from both associates and the joint venture (JV). Share of profit from associates surged 28.4%, supported by higher sales, stronger production volumes and the appreciation of RM against Japanese yen. Share of profit from the JV climbed 34.9%, benefitting from longer working days due to fewer plant shutdowns and the reversal of price-reduction provisions previously recognised. Motor Trading and Auto Parts segmental PBTs were broadly stable QoQ. Overall, Group PBT margin improved to 17.9% (from 14.5% in 2QFY25), reflecting better operating leverage and improved associates/JV performance.
YoY. CNP was largely flat (+1.9% YoY), underpinned by an 11.6% increase in the share of associates, driven by stronger production and favourable currency movements (RM appreciation vs JPY). This offset (i) an 8.1% decline in the share of JV profit due to customer and model mix, and the absence of higher other income recorded in 3QFY24; (ii) lower Motor Trading contributions (segmental PBT -5.6%), reflecting weaker sales and margin compression amid heightened competition; (iii) A 23.6% decline in Auto Parts segmental PBT due to reduced production volumes and a one-off supplier claim settlement.
YTD. 9MFY25 CNP slipped 1.0% YoY, reflecting softer contributions from Motor Trading, Auto Parts and the JV. Motor Trading declined 4.5% in line with lower TIV and weaker market demand. Auto Parts fell 18.8% due to lower volumes, a less favourable product mix and the one-off supplier claim. Share of JV profit contracted 22.8%, impacted by weaker demand and the absence of a one-off end-of-production bulk purchase recorded in 1QFY24.
Outlook. Looking ahead, we expect MBMR to deliver resilient earnings into FY25, underpinned by sustained Perodua sales momentum, firmer associate contributions, and continued operational optimisation across both the Motor Trading and Auto Parts divisions. Perodua’s market leadership and robust order pipelines should anchor vehicle sales despite a moderating TIV backdrop. Meanwhile, the Auto Parts division is positioned for sequential improvement on the back of stronger production schedules from key OEMs and ongoing efficiency gains.
Earnings Revision. No changes to current forecasts.
Valuation. We maintain our BUY recommendation with an unchanged target price of RM6.30, based on 8.0x FY26F EPS of 78.7sen and three-star ESG rating. We continue to favour MBMR for its (i) strong market positioning via Perodua, (ii) diversified revenue base across trading and parts, and (iii) strong associates’ contribution providing earnings stability.
Risk. US tariff revisions and ongoing trade negotiations have heightened global uncertainties, with potential spillovers to raw material costs, FX volatility, and domestic demand.
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 4.097077 | 4.130856 |
| EUR | 4.800240 | 4.806405 |
| CNY | 0.581645 | 0.582383 |
| HKD | 0.526592 | 0.530422 |
| SGD | 3.164464 | 3.187623 |