Net profit attributable to shareholders fell 93.1% year-on-year to RM378,000 for the six months ended 30 September 2025, on revenue down 10.2% to RM173.8 million.

 

Profit collapse was mainly due to weaker manufacturing (&ndash 29.98%) and lower car dealership sales (&ndash 4.86%), reflecting fewer sales orders, project delays, and cautious consumer sentiment around the Malaysian petrol subsidy policy and extended holidays.

 

Gross profit margin declined to 11.2% from 13.2%, with manufacturing margin falling to 21.5% and dealership margin steady at 9.2%.

 

Operating cash flow remained healthy at RM8.26M cash and cash equivalents jumped to RM28.9M.

 

Interim dividend of 0.30 sen per share was declared, payable December 15, 2025.

 

Board maintains focus on cost control, diversification, and new dealership openings but signals ongoing risk from price competition, rising costs, and changing consumer demand in the auto market.

MeGroup SJY 0.00% has reported earnings of RM3.2 million ($9.3 million) for its 1HFY2024 ended Sept 30, a 29.1% y-o-y improvement over its earnings of RM2.5 million for the same period last year.

 

Earnings per share for 1HFY2024 came to 2.70 sen, also up by 29.2% y-o-y from 2.09 sen in 1HFY2023. 

 

For the half-year period, revenue increased by 6.6% y-o-y to a record RM217.7 million, led by a recovery in its manufacturing business. Revenue from MeGroup&rsquo s manufacturing business increased 59.2% y-o-y while its dealership business posted a slight improvement of 0.2%.

 

The company&rsquo s cost of sales increased 5.3% y-o-y to RM196.1 in 1HFY2024.

 

Gross profit also increased to RM21.6 million, a 20.4% y-o-y growth over RM17.9 million in the year before period. Gross profit margin increased by 1.1 percentage points from 8.8% in 1HFY2023 to 9.9% in 1HFY2024.

 

As at Sept 30, cash and cash equivalents stood at RM5.59 million.

 

See also: Frasers Property sinks into the red with $74.0 mil loss in 2HFY2023 on fair value losses

 

The board has declared an interim dividend of 0.4 Sen per ordinary share for 1HFY2024.

 

Wong Cheong Chee, executive chairman and CEO, says: &ldquo For the first half, revenue was driven by a surge in demand from new and existing customers for the manufacturing business, leading to a strong growth momentum.&rdquo

 

&ldquo Our dealership business also continues to put up a strong showing &mdash the group was able to fulfil the high demand in the market due to our availability of ready stock in new vehicles,&rdquo he adds.  

 

The company is looking forward to a prudent expansion of its manufacturing facilities. In addition to the completion of its new factory at Kulim Hi-tech Park, equipped with the latest technology advancements to support the mass production of various car models by 3QFY2023, MeGroup intends to expand our existing manufacturing facilities at Balakong, Selangor Darul Ehsan, to increase production capacity through a property acquisition.

 

For capital recycling, the company is also in the process of disposing of a non-core freehold industry property in Selangor.

 

MeGroup says it is cautiously optimistic about the Group&rsquo s business performance for the financial year ending March 31, 2024.   

 

MeGroup&rsquo s SJY 0.00% subsidiary, Menang Nusantara Sdn. Bhd. (MNSB), has acquired a property at Lot 16, Jalan 3, Kawasan Perusahaan Cheras Jaya, 43200 Balakong, Selangor Darul Ehsan for RM16.2 million ($4.7 million).

 

A sale and purchase agreement (SPA) was entered into between MNSB and the vendor, Ngai Ming Plastic Industries (M) Sdn. Bhd., on Sept 6.

 

The 99-year leasehold property is on industrial land that measures some 4,868 sqm. The lease will expire on Dec 30, 2098. The buildings on the property include a single storey detached factory with a three-storey office annexed with an estimated built-up area of approximately 3,700 sqm.

 

Based on the property' s built-up area, the consideration values the property at RM4,378 psm. The group did not commission a valuation on the property.

 

In connection with the entry into the SPA, MNSB has entered into a tenancy agreement with Ngai Ming Plastic Industries under which MNSB will be granted a tenancy of the property for a period of one year at a rental of RM80,000 per month. The tenancy will end upon the completion of the acquisition of the property, following which, MNSB will be the property&rsquo s legal and beneficial owner.

 

MeGroup says it intends to expand its existing manufacturing facilities at the property. It also intends to relocate some of its management, sales, finance and HR operations that are currently located at its main manufacturing plant at Balakong, Selangor, Malaysia, to the new premises.

The group has secured a bank financing facility of RM36.02 million for the expansion of its manufacturing facilities. The proposed acquisition will be fully funded by the facility and with the group&rsquo s internal resources. The facility will be secured by way of a charge over the property and a corporate guarantee by the group.

 

At present, the group currently operates a manufacturing plant, an assembly plant, a thermobonded felt plant and a warehouse all located at Balakong, Selangor, Malaysia. In addition, the group operates an assembly plant in Kulim District, Kedah, Malaysia.

Catalist-listed MeGroup has been awarded Malaysia&rsquo s first national car, Proton, to its growing dealership portfolio on June 7.

 

The group&rsquo s first Proton dealership outlet will begin its 35 operations by December, while the 4S services will be operational by June 2022.

The facility will be located on a two-acre plot of land at Telok Panglima Garang, Selangor, in Malaysia, and will be MeGroup&rsquo s biggest automobile facility.

 

The establishment of the dealership will be funded through the use of the balance of the group&rsquo s IPO proceeds and internally generated funds.

 

The latest award by Proton brings the group&rsquo s total number of brands in its dealership business to seven, and the number of dealership outlets in its portfolio to 11.

 

&ldquo This appointment by Proton has been in the making for almost a year now, and we are excited to have finally been able to onboard Proton as one of our dealership brands despite the challenges we had to face throughout the Covid-19 pandemic,&rdquo says Jeffery Wong, head of growth and expansion and head of dealerships at MeGroup.

 

&ldquo We will continue to face considerable headwinds as the country is now in a total nationwide lockdown for all social and economic sectors, from June 1 to June 14. This will be another outbreak hurdle that the group will need to overcome, but we are confident that once the infection rates are under control and social activities can resume, Malaysia&rsquo s automotive sector will rebound and continue on its growth path,&rdquo adds Wong.

 

Operations in the group will be limited during Malaysia&rsquo s full movement control order (MCO), which may have a &ldquo material adverse impact&rdquo on its financial results in the financial year ending March 31, 2022.

 

While the group is unable to determine the full extent of the impact of the MCO, it says it will continue to look at expansion opportunities for its product offerings in the automotive sector.