AutoV ... Jul11

An autoparts supplier is gearing up for growth as it expands and builds up its autoparts manufacturing business through acquisitions and tie-ups to cater for Proton Holdings Bhd’s upcoming models as well as the potential consolidation of the national carmaker’s vendor supplier base. 

After a surge in earnings in 2010, the company expects its financial results to be flat in 2011 as it mainly relies on Proton’s Exora model for its autoparts sales. Growth is expected to pick up with new models from its primary customer Proton and the newly acquired businesses will add to its bottom line.

Autoparts sales to Proton constitute 70% of the group’s revenue. As the Inspira, Proton’s newest launch, has low local content, AutoV’s parts supply for the model was quite insignificant, explaining the reason behind the decline in revenue in the first quarter (1Q) this year. Slow sales of Exora since its introduction two years ago was another factor.

For 1Q ended March 31, 2011 the group’s revenue fell 11.7% year-on-year from RM26.5 million to RM23.4 million in the current quarter.

In line with the drop in revenue, AutoV also registered a lower net profit of RM2.1 million for the current period, compared with RM3.6 million in the preceding year’s corresponding period.

For the full year ended Dec 31, 2010, the group recorded a higher revenue of RM102.6 million compared with RM86.6 million in 2009, while net profit surged 67.6% from RM6.8 million to RM11.4 million.