The stock fell as much as 12% or 16 sen to RM1.14 before settling at RM1.17 by the midday break, with about eight million shares traded. At this price, the group is valued at RM2.28 billion.
The company posted a net loss of RM15.2 million in the third quarter ended Sept 30 (Q3 FY2025), it said in an exchange filing yesterday.
However, quarterly revenue rose by 8.6% to RM4.49 billion from RM4.13 billion a year ago, mainly driven by the automotive, property, banking and services segments.
For the first nine months, net profit dropped 12% to RM60.62 million from RM69.17 million previously amid softer income from the aerospace and defence, postal and properties sectors. Revenue for the period increased to RM12.74 billion from RM12.23 billion previously.
In the previous quarter (Q2 FY2025), the group appeared to have turned the corner after posting a RM58.1 million net profit, its second consecutive quarter in the black.
DRB-Hicom said the outlook for the year would be “moderate” amid external headwinds that will drag on its overall performance and industry outlook as it enters the final months of 2025.
It expects momentum at its automotive business to persist from strong consumer confidence in its electric vehicle (EV) brand following the launch of the Proton e.MAS 5 and e.MAS 7’s dominance as Malaysia’s best-selling EV.
The group owns a 50.1% majority stake in national carmaker Proton while China’s Zhejiang Geely Holding Group holds the remaining 49.9%.
Hong Leong Investment Bank (HLIB) and Public Investment Bank (PublicInvest) downgraded their calls on DRB-Hicom to “sell” following the recent rally in its share price.
The stock has only one “buy” call – by Citi Research – out of four research houses covering it.
“We remain cautious on Malaysia’s automotive market environment, given continuous stiff market competition,” HLIB said, adding the postal and defence units continue to weigh on the group.
PublicInvest said the influx of competitively priced Chinese car brands will intensify competition, squeezing profitability and limiting earnings growth.
According to Bloomberg, the average target price for the stock is 97 sen, a potential downside of up to 16% in the next 12 months from the current price level.
Syed Mohktar has a 55.9% stake in DRB-Hicom via his vehicle Etika Strategi Sdn Bhd as of March 28, 2025, according to its 2024 annual report.