The launch of the Perodua multi-purpose vehicle later this year would boost the Perodua vendor earnings.Read the full news from TheStar by Eugene Mahalingam below.
PERODUA TO LAUNCH MPV, THIS WILL HELP EP BOOST EARNINGS.
Proton and Perodua components vendor EP Manufacturing Bhd (EPMB) is optimistic the launch of the Perodua multi-purpose vehicle (MPV) later this year would boost the company’s earnings from the financial year ending Dec 31, 2010 (FY10).
Executive chairman Hamidon Abdullah said “all of its focus” would be on the Perodua MPV.
“We are participating heavily in the Perodua seven-seater,” he told StarBiz after the company AGM and EGM yesterday.
On the expected reception for the MPV, Hamidon said: “Malaysians currently are very price sensitive and looking for something economical. We feel there will be a market for the MPV which will contribute positively to our bottomline in 2010.”
Citing the Malaysian Automotive Association’s May vehicle sales report, he also said he expected a rebound in the local automotive sector in the second half of 2009.
“The local automotive industry is showing signs of recovery. Case in point, local models recorded a 16.6% increase in sales in May 2009 compared with the previous month,” said Hamidon.
According to EPMB’s annual report, the manufacture and supply of automotive component parts to Proton remained the major revenue generator in FY08, representing 67% with Perodua contributing 15%.
Main board-listed EPMB manufactures modular components, metal and plastic parts for the Proton Persona, Saga, GEN.2, Perodua Myvi and Viva.
“We provide parts for the Proton Exora MPV but it is quite minimal compared with other models,” Hamidon said.
The company also supplies automotive parts to the Middle East. Hamidon said the company currently had no plans to venture into new markets.
“We are focusing on our local business. We need to establish a firm base in our own backyard before we consider venturing into other countries.”
On the company’s water meter business, Hamidon said Britain-based Severn Trent Metering Services Ltd (STMS) was closing its factory there and would move its operations to EPMB’s Shah Alam factory.
EPMB in 2007 invested RM38.5mil to acquire Circle Ring Network Sdn Bhd, which has exclusive rights to manufacture electronic water meters designed and sold worldwide by STMS.
“We are in the process of transferring the operations,” Hamidon said.