Motion Digest Network

DRB-Hicom Bhd aims to reduce depending on its automotive and property sectors from 81% of contribution in revenue to 50% in the next five years, according to its managing director Datuk Syed Faisal Albar.

Speaking to the media after its extraordinary general meeting (EGM) today, Syed Faisal said that currently, the automotive and property sector contribution in revenue was about 81%.

“19% is others (services). We want to move up the 19% of others into about 50% in five years,” Syed Faisal said.

During the EGM today, the proposed disposal of the entire issued and paid-up capital of its wholly owned subsidiary, KL Airport Services Sdn Bhd (KLAS), for RM749.35 million and disposal of part of a freehold industrial land situated in Section 28, Shah Alam, Selangor for RM69 million to Pos Malaysia Bhd were approved by the shareholders.

Upon the completion of the proposed disposals, DRB-Hicom’s equity interest in Pos Malaysia will increase to 53.5%.

“Our intention for this EGM today is to inject all the logistic assets that we have in DRB-Hicom into Pos Malaysia and the reason for doing this is to grow the logistic business,” Syed Faisal said.

He also said that DRB-Hicom had decided in 2011 to rely less on the automotive and property and the company had looked into other areas and decided that the services sector particularly logistics was the preferred segment.

DRB-Hicom posted a net loss of RM790.8 million in its most recent fourth quarter for financial year ended March 31, 2016 (4QFY16) as compared to a net profit of RM89.8 million in the corresponding quarter a year ago, mainly attributed to the weaker performance of its automotive business especially Proton which incurred a major loss.