Malaysia's DRB-Hicom poised to see better earnings prospect with Proton-Geely joint venture
KUALA LUMPUR, Aug. 28 (Xinhua) -- DRB-Hicom, the parent company of Malaysian automaker Proton, will see better earnings outlook following the completion of the joint venture between Proton and China's Zhejiang Geely, analysts said on Monday.
DRB-Hicom announced its first quarter result last Friday that the group's net losses in the April to June quarter widened 0.2 percent year-on-year to 169.7 million ringgit (39.8 million U.S. dollars). The group, however, saw its revenue for the period improve 33.43 percent year-on-year to 3.34 billion ringgit.
Losses of the group's automotive sector reduced to 171.3 million ringgit, from 209.2 million ringgit. Its revenue also rose 19.3 percent year-on-year to 2.1 billion in the period, boosted by better sales during the Aidilfitri festive period.
PublicInvest Research said in a report Monday that it expects DRB-Hicom's automotive division to continue to see improved performances anchored by lower losses recognized from Proton upon completion of the disposal of a 49.9 percent stake to Geely.
It is noted that an extraordinary general meeting will be held on Aug. 30 to seek DRB-Hicom shareholders' approval on the proposed disposal. The disposal is expected to be completed by the fourth quarter of 2018.
Quelle + Volltext: news.xinhuanet.com/english/2017-08/28/c_136561605.htm