DRB-HICOM Berhad Full Year 2023 Earnings: EPS Misses Expectations

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

What about risks? Every company has them, and we've spotted 1 warning sign for DRB-HICOM Berhad you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.