SHAH ALAM, Wednesday, 27 August 2025: DRB-HICOM Berhad (“DRB-HICOM” or “the Group”) reported a pre-tax profit (“PBT”) of RM123.19 million for the second quarter of 2025 (“Q2 2025”), supported by revenue of RM4.14 billion. This represents a substantial improvement over the corresponding quarter ended 30 June 2024, which recorded a PBT of RM25.93 million and revenue of RM3.76 billion.
The stronger results in Q2 2025 was mainly driven by higher profit in the Banking sector, supported by increased financing and investment income as well as a reduction in the impairment allowances due to improved recoveries. Improved contributions from the Automotive, Postal, Properties, and Services sectors also reinforced the overall performance.
For the first half of 2025 (“1H 2025”), the Group recorded a PBT of RM215.81 million and revenue of RM8.25 billion, compared with a PBT of RM236.70 million and revenue of RM8.09 billion in the corresponding period of 2024. Stronger contributions from the Banking and Services sectors partially offset softer performances in other sectors, thereby supporting the Group’s overall performance stability.
REVENUE PERFORMANCE ACROSS BUSINESS SECTORS
The Group’s revenue for 1H 2025 recorded a modest increase of 2.0% to RM8.25 billion, compared with RM8.09 billion in the corresponding period of 2024. Sectoral performance was as follows:
- Automotive: Revenue rose 1.7% to RM5.68 billion (1H 2024: RM5.59 billion), supported by higher contributions from PROTON, driven by a favourable sales mix and increased sales volume from automotive distribution companies.
- Banking: Revenue improved by 5.3% to RM1.09 billion (1H 2024: RM1.04 billion), supported by higher financing income arising from sustainable loan growth and an expanding customer base.
- Postal: Revenue increased slightly by 1.5% to RM890.49 million (1H 2024: RM877.52 million), primarily from higher uplift volumes in the in-flight catering business. This was partly offset by weaker freight management operations and continued decline in traditional mail services.
- Aerospace & Defence: Revenue declined 12.7% to RM343.91 million (1H 2024: RM394.06 million), reflecting lower deliveries of single-aisle aircraft and selected aircraft parts amid softer airline demand.
- Properties: Revenue grew 34.0% to RM140.92 million (1H 2024: RM105.20 million), mainly driven by contributions from property concession and development projects.
- Services: Revenue rose 14.5% to RM103.49 million (1H 2024: RM90.35 million), largely due to a higher turnout of commercial vehicles in the vehicle inspection business.
PROSPECTS FOR THE FINANCIAL YEAR ENDING 31 DECEMBER 2025
The Malaysian economy is projected to grow between 4.0% and 4.8% in 2025, supported by resilient domestic demand. Bank Negara Malaysia reduced the Overnight Policy Rate to 2.75% in July 2025, aimed at preserving Malaysia’s steady growth path amid moderate inflation prospects. Meanwhile, the global outlook remains challenging largely driven by uncertainties over US tariff policies and fiscal sustainability.
The Malaysian Automotive Association anticipates a lower Total Industry Volume in 2025 compared to 2024, with the sector continuing to be impacted by dampened consumer demand, rising competition, and potential effects from fuel subsidy rationalisation. The sales performance of the Group’s new models will hinge on consumer sentiment and overall economic conditions.
Other businesses within the Group will remain focused on building resilience through stronger risk management and sustainability efforts. Digital transformation is progressing in the Banking and Postal segments, while other sectors, namely Aerospace and Defence, Services, and Properties remain committed to strengthening business capabilities for the long-term growth.
The Group anticipates a moderate outlook for the financial year ending 31 December 2025.
-END-
