sales target


Coca-Cola reports higher profits, lifting shares

NEW YORK, Oct 18 — Coca-Cola reported higher third-quarter profits today, citing solid sales of soda and innovative products like smaller drink cans that offset the hit from a strong dollar. The beverage giant lifted full year profit and sales…

Ericsson sales rise but earnings hit by corruption provision

STOCKHOLM, Oct 17 — Ericsson today reported rising sales, but the bottom line of the Swedish maker of telecommunications network equipment was hit as it set aside €1.1 billion (RM5.1 billion) to settle a US corruption probe. The company, which…

Bermaz Auto sees positive response to new Mazda CX-8

KULIM: The main distributor of the Mazda automobile models in Malaysia expects to sell up to 2,000 vehicles annually of its new Mazda CX-8 model due to the growing demand for family SUVs in the market.

Despite concerns over the global economy due to the trade war between China and US, there is an optimism outlook within the listed Bermaz Auto Bhd for another solid performance this year in terms of sales and marketing outreach.

Its executive chairman Datuk Seri Ben Yeoh Choon San said that the distributing outfit is comfortable with the sales target of 2,000, as it can consolidate on its niche position as a medium premium range of cars.

The optimism is also derived from a belief that there is no immediate competitor to the CX-8, said Yeoh during the official rollout of the model at its manufacturing hub in the sprawling Inokom Corporation assembly plant.

“We have a three row seating, it is a compact SUV with family needs and our specifications take into account the high safety as well as entertainment needs.”

The nearest competitor to our belief is the Toyota Fortuna, said Yeoh.

The CX-8 is a Mazda CKD (completely knocked-down) locally assembled.

This would likely make its on-the-road price competitive although Yeoh said that the pricing will only be revealed later this month.

Industry insiders are speculating a price range of RM180,000 to RM250,000.

In terms of marketing positioning, Mazda sits at number six in terms of cars sold in Malaysia but its sales have steadily reflected an increase to an extent it has outpaced European premium brands such as Mercedes and BMW.

Since last year, it has increased its market share to 3% on the back of the robust demand for its CX–5 model which sold 15,765 units during the three–month tax holiday period. Its sales volume also surged 66.8% in 2018 from the previous year.

Mazda has four service branches in the country with 68 dealers.

It manufactured 220,000 Mazda models last year from its assembly line in Kulim, where most were exported mainly to the Philippines.

Yeoh expects the CX-8 to also be exported to Thailand and the Philippines.

In the Philippines, all models are imported by Berjaya Auto Philippines Inc, a 60%-owned subsidiary of Berjaya Motor International Ltd, which in turn is a wholly owned subsidiary of Bermaz Motor Sdn Bhd.

Bermaz Auto’s net profit jumped 89.5% to RM265.26 million for the financial year ended April 30, 2019, driven by higher revenue and an improvement in gross profit margin from the domestic operations.

Eco World development group’s Q3 net profit surges 82pc

KUALA LUMPUR, Sept 19 — Eco World Development Group Bhd (EcoWorld Malaysia)’s net profit surged 82 per cent to RM50.48 million in the third quarter ended July 31, 2019 (Q3 2019), from the RM27.80 million chalked up in the same period last year….

MRCB actively traded after posting disappointing Q2 results

KUALA LUMPUR, Aug 27 — Malaysian Resources Corporation Bhd’s (MRCB) shares were actively traded today after the company posted disappointing second quarter financial results. At 11.30am, MRCB shares slipped half-a-sen to 73.5 sen with 2.02…

Proton expected to zoom past Honda in year-to-date market share

PETALING JAYA: Proton is expected to overtake Honda in the year-to-date (YTD) market share, helped by volume-oriented models like the Persona and Iriz, according to AmInvestment Bank.

It said that based on a media report recently, Proton registered a total sales volume of 8,600 units in July, translating into a market share of 16.5% for the month and 15% on a YTD basis.

The total sales for Proton for the first seven months of 2019 (7M19) stood at 52,200 units, recording a growth of 48% year-on-year.

“While we have yet to receive the official MAA (Malaysian Automotive Association) numbers for the other brands and the total TIV (total industry volume) breakdown, it is highly likely that Proton has ousted Honda and claimed its position as the runner-up in YTD market share.

With the sustained momentum and deliveries from volume-oriented models like the Persona and Iriz, we strongly believe that Proton will finish second by the end of 2019, behind the national titan Perodua,“ it said in a report today.

Perodua, meanwhile, posted a total sales volume of 19,100 units in July. It is maintaining its sales target of 235,000 units for 2019.

“We strongly believe that the national marques’ sales volume will continue to be the key driver of the local automotive space.

“With the recent launch of the Saga (latest version), we believe that Proton will be able to maintain its sales volume momentum through the remaining months of the year. We also look forward to the upcoming X70 CKD in November, where DRB-Hicom’s management has guided that there will be a price reduction for the popular SUV,” said AmInvestment Bank.

July 2019 TIV rose 20% mom but dipped 26% yoy to 50,900 units. The year-on-year decrease in July this year was due to a high base from 2018’s tax holidays. Cumulatively, 7M19 TIV was down 3% to 347,200 units from 358,100 units in 7M18.

“YTD TIV was within our forecast of 603,000 units for 2019, accounting for 58% of our full-year estimates,” it added.

AmInvestment Bank has ‘buy’ calls on Bermaz Auto Bhd, DRB-Hicom Bhd, MBM Resources Bhd, Pecca Group Bhd, Sime Darby Bhd and Tan Chong Motor Holdings Bhd while it is underweight on APM Automotive Holdings Bhd.

“We are now upgrading the automobile sector to overweight based on our recent upgrade on Sime Darby to buy. We believe that the stock’s valuation is undemanding at current levels and we are now recommending a buy on weakness of the share price. We now have six buys out of the eight stocks under our automobile sector coverage,” AmInvestment Bank said.

Higher costs eat into SP Setia’s Q2 earnings, FY19 sales target slashed to RM4.55b

PETALING JAYA: SP Setia Bhd’s net profit for the second quarter ended June 30, 2019 tumbled 68.7% to RM138.73 million from RM442.74 million a year ago, mainly due to higher cost of sales and taxation.

Amid an uncertain macro-economic situation and prolong subdued property market, the group has revised the sales target for FY2019 from RM5.65 billion to RM4.55 billion, which is aligned to the present market conditions, according to its president & CEO Datuk Khor Chap Jen (pix).

Its revenue, however, jumped 44.3% to RM1.34 billion compared with RM925.97 million.

For the Islamic redeemable convertible preference shares, SP Setia has declared an interim dividend for the six-month period from January 1, 2019 to June 30, 2019 of 6.49% and 5.93% per annum respectively.

For the six-month period, the group’s net profit sank 62% to RM191.55 million from RM504.23 million while revenue went up 39.2% to RM2.20 billion versus RM1.58 billion a year ago.

The revenue and pretax profit achieved thus far were largely contributed by ongoing projects in Malaysia while on-going international projects of Battersea Power Station in London, UK as well as Sapphire by the Gardens and UNO in Melbourne, Australia were recognised on completion method, hence there was no profit contribution from the said international projects in the first half of FY2019.

Over the same period, the group secured sales of RM1.98 billion. Local projects contributed RM1.71 billion, which represented 87% of the total sales, while international projects contributed RM262.6 million, which represented the remaining 13% of the total sales.

For the first half of FY2019, properties worth RM1.55 billion in gross development value (GDV) were launched.

“The group continues to monitor the property market closely and has revised the total planned launches to RM3.33 billion for the second half of FY2019” said Khor.

The planned launches will focus in Klang Valley with RM2.32 billion and Johor with RM776 million worth of launches.

Given the versatility of the planned launches in the pipeline as well as the extension of Home Ownership Campaign, SP Setia is confident of achieving the revised sales target of RM4.55 billion.

“Anchored by 46 ongoing projects with 9,381 acres of effective land banks remaining and potential GDV of RM144.52 billion, prospects going forward remain positive with total unbilled sales of RM10.67 billion as at June 30, 2019.”

PKNS eyes RM60m sales at property expo

KUALA LUMPUR, July 27 — The Selangor State Corporation (PKNS) is targeting RM60 million in sales from the 10-day PKNS Property Exhibition Series 2/2019 from July 26 to August 4. In a statement today, PKNS said the exhibition, in conjunction with…

Perodua ramps up production volume to shorten delivery time

KUALA LUMPUR: Perodua, which has revised upward its sales target by 4,000 units this year, aims to increase its production volume to 249,000 units this year in a bid to address the delivery time issue.

Speaking at a media conference on its first-half performance review today, its president and CEO Datuk Zainal Abidin Ahmad said the increase in production will improve its stock levels to 0.5%, based on its monthly production level, from the current 0.1%.

This will effectively reduce the waiting time to less than a month for its customers.

“At the moment, there is a two-month waiting period for our vehicles and this is due to our stock levels being very low, but the production volume increase will address this issue… hopefully, next year we’ll have the right footing with a good level of inventory so that we do not have the same problem with this year.”

The 249,000 production target represents a 12.9% increase from the 220,600 units produced in 2018. Currently, its monthly production ranges between 18,000 and 20,000 units.

At present, both of its production facilities are running at full capacity of 97%.

On sales, Perodua sold 121,800 units in the first half of the year, a 4% increase from 117,100 units recorded in the same period last year.

Following that, it has set a higher sales target of 235,000 units from its previous estimate of 231,000 units.

In 2018, Perodua sold 227,243 vehicles, the highest annual sales achievement in its history.

As for its export market, Perodua has a target of 3,270 units for 2019, of which 2,170 units from the Indonesian market.

Last year, it exported 2,184 units, significantly lower than the 9,000 units achieved in 2012.

Zainal explained that Perodua needs to fulfil domestic market requirements before exporting overseas and it also depends on whether the group could achieve cost competitiveness.

With regard to capital expenditure, Perodua has spent RM102.2 million in the first half of 2019, out of the RM667.6 million allocated for the year.

Zainal said the bulk of it will be utilised towards expanding its test track in its research and development facilities to ensure that Perodua is ready to meet any new regulatory development that will be introduced in the future.

For 2019, Perodua estimates that it will have a market share of 40%.

Perodua revises upward sales target after 4% growth in first half

KUALA LUMPUR: Perodua has revised its sales target upwards by 4,000 units to 235,000 units from 231,000 unit earlier.

This comes after it sold 121,800 units in the first half of the year, a 4% increase from 117,100 units recorded in the same period last year.

Last year, the group sold 227,243 vehicles, the highest annual sales achievement in its history.

Speaking at a press conference today in conjunction with the first-half performance review, Perodua president and CEO Datuk Zainal Abidin Ahmad said both of its plants are running at full capacity of 97%.