KUALA LUMPUR: DRB-Hicom’s core net loss of RM339mil in the nine months ended Dec 31, 2017 was worse than CIMB Equities Research’s and consensus expectations due to wider-than-expected losses in the auto division.The research house said on Wednesday core net loss in 3QFY3/17 narrowed sequentially due to stronger contribution from services segment following the consolidation of Pos Malaysia.“We now expect wider core net losses in FY17-18F due to higher losses in the auto segment from stiff competition and sluggish consumer sentiment. As a result, DRB-Hicom reported a wider core net loss of RM339mil in 9MFY17 vs. RM145mil a year ago, “which was worse than our and consensus expectations”. The auto segment posted a wider pretax loss of RM335mil in 9MFY17 vs. RM193mil in 9MFY16. DRB-Hicom now owns 53.5% of Pos Malaysia (vs. 32.2% previously),” it said. Key downside risks are lack of FSP for Proton and deterioration in Proton’s earnings,” said the research house.

Source: The Star March 01, 2017 00:11 UTC