KUALA LUMPUR, 20 FEBRUARY 2025 – Betamek Berhad (“Betamek” or the “Company“), an Original Design Manufacturer (“ODM“) and a leading player in electronics manufacturing services (“EMS”) for the automotive industry, announced its financial results for the third quarter ended 31 December 2024 (“Q3 FY2025”) with a 28.3% growth in revenue compared with the immediate preceding quarter (“Q2 FY2025”). Reflecting the Company’s solid financial position and commitment to shareholder value, Betamek has declared a third interim single-tier dividend of 1.0 sen per ordinary share, which will be payable on 19 March 2025.
For Q3 FY2025, Betamek recorded revenue of RM72.26 million, representing a 22.0% increase compared to RM59.22 million in the same quarter last year. The revenue growth was primarily driven by higher sales orders from Perusahaan Otomobil Kedua Sdn. Bhd. (“Perodua”) and fresh contributions from Sanshin (Malaysia) Sdn. Bhd. (“SMSB”), which was recently consolidated into the Company’ financials. The Company reported a gross profit of RM8.94 million, compared to RM9.19 million in Q3 FY2024, while profit after tax (“PAT”) stood at RM4.73 million, slightly lower than RM5.05 million recorded in the same period last year. The decline in PAT was primarily due to increased administrative and operating expenses, along with other costs associated with the integration of SMSB into Betamek’s operations.
Compared to Q2 FY2025, Betamek’s current quarter’s revenue increased by 28.3%, rising from RM56.32 million in Q2 FY2025 to RM72.26 million. This growth was largely fueled by higher sales from Perodua and the additional revenue contributions from SMSB. The vehicle audio and video products segment registered RM47.87 million in sales, up from RM40.38 million in the preceding quarter, while the vehicle accessories segment also experienced strong growth, rising from RM11.07 million to RM18.85 million.
For the nine-month period ended 31 December 2024 (“9M FY2025”), Betamek posted total revenue of RM178.55 million, marking a 7.6% increase from RM166.01 million recorded during the same period last year. The Company’s gross profit remained stable at RM27.05 million, reflecting continued emphasis on cost management and operational efficiencies. Profit before tax (“PBT”) for the nine-month period reached RM24.72 million, an 18.8% increase from RM20.81 million in the previous year, primarily driven by the consolidation gain from SMSB in the previous quarter. Year-to-date PAT stood at RM20.07 million, reflecting a 29.4% increase from RM15.51 million in the corresponding period of the previous year, demonstrating the positive impact of the Group’s recent strategic initiatives.
Muhammad Fauzi Bin Abd Ghani, Executive Director of Betamek
Commenting on the results, Encik Muhammad Fauzi Bin Abd Ghani, Executive Director of Betamek stated, “Our strong performance in Q3 FY2025 reflects the resilience of our business strategy, supported by the sustained growth of the automotive sector and increased contributions from our recent acquisition of SMSB. The consolidation of SMSB has strengthened our market position, and we remain focused on optimising its profitability through improved cost efficiencies and operational integration.”
He added, “Additionally, the support from the RM396,420 government grant awarded by MIDF underscores our commitment to embracing digital transformation and smart manufacturing. The recognition from MARii further reinforces our industry leadership, positioning Betamek as a trusted supplier within the automotive ecosystem. Moving forward, we will continue to innovate and leverage our partnerships to enhance operational capabilities and capitalise on emerging opportunities, particularly in the expanding EV and smart vehicle markets.”
The Malaysian automotive sector remains resilient, with multiple investment banks raising their 2025 total industry volume (“TIV”) forecasts in response to sustained mass-market growth. Maybank Investment Bank Research has revised its projection from 750,000 to 790,000 units, while CIMB Research increased its forecast to 760,000 units, citing higher consumer spending driven by the minimum wage increase in February 2025 and the December 2024 civil servant wage hike. Additionally, the postponement of the Open Market Value (“OMV”) ruling to January 2026 has temporarily eased concerns over potential price hikes for locally assembled vehicles, supporting short-term demand.
Despite strong mass-market performance, premium and luxury vehicle sales may face challenges due to rising competition, potential petrol subsidy rationalisation, and the high-value goods tax. Meanwhile, EV and hybrid adoption rates are projected to reach 3% and 5% in 2025, driven by new model launches and aggressive pricing ahead of the tax-free period expiry for fully-imported (“CBU”) EVs. The Malaysia Automotive Association (“MAA”) has set its 2025 TIV forecast at 780,000 units, while estimates range from 730,000 to 805,000 units across different financial institutions, reflecting broad confidence in the industry’s growth.
Following the solid financial performance in Q3 FY2025, the Board of Directors has declared a third interim single-tier dividend of 1.0 sen per ordinary share, payable on 19 March 2025. This brings the total dividend declared for the nine-month period of FY2025 to 3.25 sen per ordinary share, reflecting Betamek’s ongoing commitment to rewarding shareholders while sustaining its growth trajectory.
As at 5:00 P.M. 20 February 2025, the share price of Betamek Berhad closed 43 sen, representing a market capitalisation of RM193.5 million.
