DRB-HICOM Berhad (KLSE:DRBHCOM) Full Year 2023 Results

Key Financial Results

• Revenue: RM15.9b (up 2.2% from FY 2022).

• Net income: RM238.9m (up 27% from FY 2022).

• Profit margin: 1.5% (up from 1.2% in FY 2022). The increase in margin was driven by higher revenue.

• EPS: RM0.12 (up from RM0.097 in FY 2022).

All figures shown in the chart above are for the trailing 12 month (TTM) period

DRB-HICOM Berhad EPS Misses Expectations

Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 23%.

The primary driver behind last 12 months revenue was the Automotive segment contributing a total revenue of RM11.4b (72% of total revenue). Notably, cost of sales worth RM13.5b amounted to 85% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to RM1.67b (81% of total expenses). Explore how DRBHCOM's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 3.6% p.a. on average during the next 3 years, compared to a 7.4% growth forecast for the Auto industry in Asia.

Performance of the market in Malaysia.

The company's share price is broadly unchanged from a week ago.

Risk Analysis

It's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with DRB-HICOM Berhad, and understanding this should be part of your investment process.

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