Car dealer MeGroup has reported earnings of RM2.5 million for its 1H2023 ended Sept, a turnaround from a loss RM4.9 million in the year earlier period. Revenue in the same period was up 154.3% y-o-y to a record level of RM204.1 million, driven by higher sales volume of cars.
Wong Cheong Chee, the company’s executive chairman and CEO, notes that its recent acquisition of a 20% interest in an associated company, Hanamaru Auto Trading (Malaysia) earlier this year will help open up new income streams.
Wong notes that international borders have reopened and that Malaysia’s economy too, is recovering.
“We will continue to take steps to improve our business performance by continuing to execute the current existing and new projects in the manufacturing segment, and work with brand principals to introduce new models and designs in the dealership segment to expand our product offerings in the automotive industry,” he says.
The company plans to pay an interim dividend of RM0.012 per share, representing a payout ratio of 57%
MeGroup shares last traded at 9 cents, down 18.18% year to date.
