Kuala Lumpur, May 25: Betamek Berhad, an Original Design Manufacturer (ODM) and a prominent player in the electronics manufacturing services (EMS) sector for the automotive industry, has reported a significant growth in Profit Before Tax (PBT) for the financial year ending 31 March 2024 (FY2024).
The company’s PBT reached RM26.4 million, driven by successful expansion plans and strategic acquisitions.
In the fourth quarter of FY2024 (FY2024 Q4), Betamek achieved a revenue of RM56.0 million and a PBT of RM5.6 million.
The vehicle audio and visual products segment was the primary contributor, generating RM43.5 million or 77.61 per cent of the total revenue.
The remaining revenue came from the vehicle accessories segment.
Year-on-year, Betamek’s revenue for FY2024 increased by 7.93 per cent, totalling RM222.0 million compared to RM205.7 million in FY2023.
The vehicle audio and visual products segment led this growth, contributing RM173.7 million or 78.22 per cent of the total revenue.
All revenue was derived from Malaysian customers.
The PBT rose by 17.72 per cent, from RM22.4 million in the previous year to RM26.4 million, reflecting strong demand for Betamek’s automotive electronics products and components.
However, Betamek’s Q4 FY2024 revenue saw a slight decline of 5.42 per cent compared to the preceding quarter (Q3 FY2024), due to long festive holidays that impacted vehicle production.
The vehicle audio and visual products segment generated RM43.5 million in Q4, down from RM45.9 million in Q3, while the vehicle accessories segment decreased slightly from RM13.4 million to RM12.5 million.
The Gross Profit (GP) margin for Q4 was 14.89 per cent, a decrease from 15.51 per cent in the preceding quarter, mainly due to the continued weakness of the Malaysian Ringgit (MYR) against the US Dollar (USD).
Consequently, the PBT margin also decreased to 9.98 per cent from 11.72 per cent, influenced by the reduced GP margin and increased operational expenses.
Looking ahead, the Malaysia Automotive Association (MAA) projects a Total Industry Volume (TIV) of 740,000 units for 2024, indicating sustained demand despite economic uncertainties.
The Malaysian government’s support for the electric vehicle sector is expected to drive production and attract investments, fostering industry growth. Betamek anticipates a dynamic FY2025, bolstered by a recent joint venture with Shenzen Zhonghong Technology Co., Ltd., aimed at penetrating new ASEAN markets with advanced driver assistance systems (ADAS) and smart cockpit solutions.
Additionally, the strategic acquisition of Sanshin (Malaysia) Sdn. Bhd. will diversify Betamek’s customer base and expand its international footprint, enhancing the company’s product offerings and market reach.
Muhammad Fauzi Abd Ghani, Executive Director of Betamek, commented on the results: “Our performance in FY2024 underscores Betamek’s resilience and strategic vision amidst market challenges. The acquisition of Sanshin Malaysia and our joint venture with Shenzen Zhonghong Technology mark significant milestones that will drive our growth strategies in FY2025. We remain committed to innovation and excellence, and we are confident that these strategic moves will strengthen our market position and deliver long-term value to our stakeholders.”
For FY2024, Betamek declared a total dividend of 3.0 sen per share, amounting to RM13.5 million.
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