Latest Quarterly Results

Condensed Consolidated Statements Of Profit Or Loss And Other Comprehensive Income
For The Quarter Ended 31 March 2025 - unaudited

The above condensed consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the audited financial statements for the year ended 31 December 2024 and the accompanying explanatory notes attached to these interim financial statements.

Condensed Consolidated Statements Of Financial Position
As At 31 March 2025 - unaudited

*Net assets per share is calculated based on total share capital in issue less treasury shares of 6,105,700.

The above condensed consolidated statement of financial position should be read in conjunction with the audited financial statements for the year ended 31 December 2024 and the accompanying explanatory notes attached to these interim financial statements.

Operating Segments Review

Statement of Financial Position

The Group's financial standing remained robust with shareholders' fund of RM1.5 billion and a net cash position of RM284.2 million as at 31 March 2025 (i.e. cash and cash equivalents plus other investments (current assets) and less bank borrowings). The Group's current ratio (i.e. Current Ratio = Current Assets/Current Liabilities) improved from 2.52 times to 2.62 times. This improvement was primarily driven by faster inventory turnover and a reduction in trade and other payables, which declined by RM38 million or 9.6% in Q1 2025 compared to 31 December 2024.

The Group's net assets per share decreased from RM7.36 as at 31 December 2024 to RM7.24 as at 31 March 2025. The decline was mainly attributable to dividend payments totalling RM35.2 million to shareholders and RM10.0 million to non-controlling interests during the quarter. Additionally, the strengthening of the Malaysian Ringgit led to unfavourable foreign currency translation effects on the Group's foreign subsidiaries, associates, and joint ventures, further contributing to the reduction in net assets per share.

Statement of Cash Flow and Capital Expenditure

For the current quarter ended 31 March 2025, the Group recorded a net decrease in cash and cash equivalents of RM29.6 million from RM528.4 million as of 31 December 2024 to RM498.8 million as of 31 March 2025. The negative cash flow movement was attributed to the following factors:-

1. Net cash generated from operating activities of RM29.1 million that was mainly driven by pre-tax profit of RM34.1 million and lower inventory holding resulting in positive changes of RM55.9 million, offset by higher deposits and prepayments balance which resulted in negative changes of RM32.1 million and settlement of trade and other payables resulting in negative changes of RM37.6 million;
2. Net cash used in investing activities of RM5.9 million mainly for the investments in unit trusts amounting to RM5.0 million; and
3. Net cash used in financing activities of RM52.8 million mainly due to the payment of dividend to owners of the Company totalling RM35.2 million, payment of dividend to non-controlling interests totalling RM10.0 million, net repayment of loans and borrowings amounting to RM6.9 million.

As of 31 March 2025, the Group's capital commitment stood at RM29.6 million comprising primarily the Group's investment in tooling, machineries/equipment and development costs for the supply of parts for new vehicle models and the construction of a new production facility. The capital commitment is funded internally and through bank borrowings.

The Group recognizes that the retention of sufficient cash reserves is essential in the pursuit of growth and expansion. Thus, the Group's liquidity remains intact as the balance of Islamic Medium-Term Notes of up to RM1.25 billion in nominal value, as of the date of this report, can be utilized for future capital investment, if and when required.

Analysis of Performance of All Operating Segments

Q1'2025 vs. Q1'2024

For the current quarter ended 31 March 2025, the Group recorded revenue of RM499.7 million, an increase of 1.9% compared with revenue of RM490.4 million in the corresponding quarter ended 31 March 2024. The higher revenue in Q1'2025 was driven by the commencement of supply for certain new models launched in Malaysia since Q2'2024.

Despite recording higher revenue, the Group's profit before tax ("PBT") reduced slightly from RM35.8 million in the corresponding quarter ended 31 March 2024 to RM34.1 million in the current quarter ended 31 March 2025. The lower PBT was mainly due to the higher finance costs associated with the additional issuance of IMTN in Q2'2024 and the lower share of profit from the Group's associates and joint ventures.

Suspension Division

For the current quarter ended 31 March 2025, the Suspension Division recorded a 16.2% decrease in revenue (Q1'2025: RM49.0 million; Q1'2024: RM58.5 million) mainly due to the softening of local OEM market. In line with the lower revenue and unfavourable sales mix, the Suspension division registered a LBT of RM1.1 million compared to PBT of RM1.6 million in the corresponding quarter of last year.

Interior & Plastics Division

For the current quarter ended 31 March 2025, the Interior & Plastics Division recorded a 3.8% increase in revenue (Q1'2025: RM393.7 million; Q1'2024: RM379.2 million) mainly due to the commencement of supply for certain new OEM models since Q2'2024. Despite recording higher revenue, PBT reduced by 2.7% (Q1'2025: RM33.8 million; Q1'2024: RM34.7 million). The higher PBT in Q1'2024 was boosted by the recovery of development expenditures for certain OEM model.

Electrical & Heat Exchange Division

For the current quarter ended 31 March 2025, the Electrical & Heat Exchange Division registered a 10.1% decrease in revenue (Q1'2025: RM33.6 million; Q1'2024: RM37.3 million) mainly due to the lower call-ins from certain OEM customers. Despite recording lower revenue, PBT improved to RM0.6 million (Q1'2024: RM0.4 million) due to upward price adjustment and claims received from a customer.

Marketing Division

For the current quarter ended 31 March 2025, the Marketing Division recorded revenue of RM68.1 million, marginally lower than the RM68.7 million recorded in the corresponding period last year. Despite the relatively stable revenue, the Division registered a lower PBT of RM1.3 million compared to PBT of RM1.8 million in Q1'2024. The decline in PBT was mainly due to higher unrealized foreign exchange gains recognised in Q1'2024 which arose from trade receivables denominated in foreign currencies.

Non-Reportable Segment, Malaysia

This segment comprises mainly operations relating to revenue received from sources that include the rental of properties in Malaysia, provision of management services, and engineering and research services for companies within the Group. Revenue generated from these services and sources form part of the inter-segment elimination for the total Group's results (as depicted in Note A9). This segment also comprises the Group's investment and participation in associate.

For the current quarter ended 31 March 2025, this segment's revenue increased by 8.6% to RM13.2 million from RM12.1 million in Q1'2024, mainly due to higher inter-group billing of services. In line with the higher revenue and unrealized fair value gains from other investments, this segment recorded a lower LBT of RM1.0 million compared to LBT RM2.0 million in the corresponding quarter of last year.

Indonesia Operations

Indonesia Operations refer to the manufacturing and supply of suspension products such as coil springs, shock absorbers and leaf springs as well as the Group's investment and participation in joint ventures and associates in Indonesia.

For the current quarter ended 31 March 2025, the Indonesia Operations recorded revenue of RM23.0 million, an increase of 5.0% compared to RM21.9 million in the corresponding quarter of last year. The increase in revenue was primarily due to the start of supply to a new OEM customer. In line with the higher revenue and coupled with the write-back of provisions for slow-moving inventories, the Indonesia Operations recorded a higher PBT of RM1.9 million compared to PBT of RM1.1 million in the corresponding quarter of last year.

All Other Segments

This business segment refers to the Group's operations in Thailand, Vietnam, Australia, the United States of America ("USA"), the Netherlands and Myanmar ("Operations Outside Malaysia").

For the current quarter ended 31 March 2025, Operations Outside of Malaysia recorded revenue of RM39.6 million, essentially flat from the RM39.4 million recorded in the same period last year. Despite the flat revenue, this segment reported a lower LBT of RM1.2 million compared to LBT of RM2.4 million in the corresponding quarter of last year, mainly due to the gain from the disposal of a production line in the Thailand operations.

Commentary On Prospects and Targets, Strategies and Risk

APM is principally involved in the design, manufacturing, assembly and production of automotive and mobility components. The Group's main operations are located in Malaysia, but it is also present in various other jurisdictions, including the United States of America (U.S.), the Netherlands, Australia, Thailand, Vietnam, the Republic of Indonesia and the United Kingdom.

Following a record year for Malaysia's automotive industry in 2024—both in terms of sales and production—the Total Industry Volume (TIV) and Total Industry Production (TIP) declined in the first quarter of 2025, as anticipated. TIV for Q1 2025 decreased by 7% to 188,122 units from 203,137 units in Q1 2024, while TIP dropped by 16% to 177,603 units from 210,527 units in Q1 2024. Looking ahead, the Group expects both TIV and TIP in Malaysia to moderate for the remainder of 2025 compared to 2024, due to shrinking order backlogs and the rising share of electric vehicle sales, which are predominantly imported as Completely Built-Up (CBU) units. Nevertheless, demand for A-segment passenger vehicles remains robust and is expected to stay relatively stable.

Despite prevailing tariffs and trade-related challenges, the REM and Export segments remained relatively stable in the first quarter of 2025. However, uncertainties persist for the remainder of the year. The Group anticipates continued headwinds in the domestic REM segment, driven by intense competition from imported goods. In the Export segment, the Group remains focused on strengthening its presence in key international markets, particularly the United States, Australia and Europe.

Overseas operations are similarly affected by tariff-related uncertainty and the ongoing trade war. In Indonesia, the automotive industry is facing a series of challenges, resulting in a decline in vehicle sales. Despite these conditions, the Group remains cautiously optimistic, supported by a diversified customer base and broad product portfolio. The entry of new Chinese carmakers could offer new growth opportunities.

The Group remains fully aware of the challenges currently facing the global economy. Geopolitical tensions remain elevated, and any further escalation may result in renewed financial market volatility and wider disruptions to economic activity. In light of these ongoing uncertainties, the Group will continue to adopt a prudent and cautious approach in managing its operations.

Looking ahead, the Group remains committed to the execution of its five-year strategic plan, aimed at strengthening long-term business sustainability and consistently delivering value to shareholders.