KUALA LUMPUR, September 4 – UMW Holdings Berhad (“Group”) has reported a significant increase in profit after taxation and minority interests (PATAMI) for the second quarter ended 30 June 2023 (Q2 2023). The PATAMI surged to RM303.6 million, compared to RM107.2 million in the corresponding quarter of 2022. This remarkable growth can be primarily attributed to a 20.2% increase in revenue to RM4,484.9 million and the completion of the sale of industrial land in Serendah to Longi (Kuching) Sdn. Bhd. (“Longi”) during the quarter, generating RM304.9 million.
The Group’s profit before taxation and zakat (PBTZ) more than doubled to RM476.0 million, a significant increase from RM230.0 million reported in the corresponding quarter. This boost was supported by higher contributions from all three core business segments and the recognition of RM218.1 million in profit from the sale of the industrial land to Longi. The Automotive segment’s revenue for Q2 2023 increased by 9.6% to RM3,417.2 million compared to RM3,117.4 million in the corresponding quarter. This growth was primarily due to the higher number of vehicles sold.
Consequently, the segment’s PBTZ reached RM212.8 million, higher than the RM202.9 million reported in the corresponding quarter. The Malaysian Automotive Association (MAA) recently revised its Total Industry Volume (TIV) forecast for 2023, projecting an 11.5% increase to 725,000 units. This positive forecast is supported by a high number of industry outstanding orders, totaling over 300,000 units. The Group anticipates continued strong performance in the second half of 2023 as the economy expands.
The Equipment segment’s revenue increased by 24.4% to RM456.2 million in Q2 2023 due to higher equipment deliveries for both local and overseas markets. With higher revenue, the segment’s PBTZ grew by 38.4% to RM49.1 million for Q2 2023. The Equipment segment anticipates continued positive performance driven by demand amid global economic recovery and infrastructure projects. The M&E segment achieved revenue of RM299.7 million in Q2 2023, a 32.4% increase from RM226.4 million in the corresponding quarter. This improvement was primarily due to higher contributions from the Aerospace sub-segment due to increased fan case deliveries.
Consequently, the segment’s PBTZ surged to RM21.8 million, 67.1% higher than the RM13.1 million reported in the corresponding quarter. Looking ahead, the Auto Components and Lubricants sub-segments are expected to grow in line with increasing demand for automotive products following the MAA’s upward revision of TIV. The reopening of international borders and increased air travel is expected to benefit the Aerospace sub-segment. Rolls-Royce’s three-year forecast indicates an expected improvement in aircraft orders beyond pre-Covid-19 levels, further contributing to the Aerospace sub-segment’s performance in the second half of 2023.
UMW Holdings Berhad President and Group CEO, Dato’ Sri Ahmad Fuaad Kenali, expressed satisfaction with the Group’s strong Q2 2023 performance, surpassing pre-pandemic levels. The Group aims to strengthen its businesses through operational efficiency, cost management initiatives, and its CREST@UMW initiatives to improve resilience and sustainability, with expectations of satisfactory performance for the full year 2023.
