Quick Comments On MBM's Earnings

Ok.. here's a set of really decent earnings announced.

From the company earnings notes.

• Group Financial Performance
  First quarter ended 31 March 2010 compared with first quarter ended 31 March 2009
  The Malaysian motor TIV of sales by registration improved in the first quarter of 2010 by 24.2% compared against the same period of 2009. Similarly, it improved by 6.1% over the preceding quarter.
  
  Group revenue improved by 47.9% to RM363.8 million. Profit from operations improved by 192.8% to RM14.7 million, whilst share of results of associate companies improved by 400.2% to RM30.6 million. Net profit attributable to owners of the Company improved by 327.3% to RM40.0 million.
  
  The group's net cash position (after total borrowings) more than doubled to RM111.6 illion as at 31 March 2010 compared with RM54.7 million as at 31 March 2009 (refer note 24).
  
  First quarter ended 31 March 2010 against previous quarter ended 31 Dec 2009
  Group revenue improved by 24.4%. Profit from operations improved by 74.9%, whilst share of results of associate companies improved by 76.8%. Net profit attributable to owners of the Company improved by 92.9%.
  
  The group’s net cash position (after total borrowings) declined to RM111.6 million as at 31 March 2010 compared with RM120.3 million as at the end of 31 December 2009.
  
  Net assets per share rose to RM3.83 as at the end of March 2010 from RM3.69 as at end of December 2009.
  

Source: here

How?

This sector is doing well yes?

Could this strong trend last?

Would the recent hike in rates have an impact in the future?

The company said the following of its prospects.

• Prospects
  The demand for the vehicles the Group offers remains strong. Based on the outstanding orders to date, revenues are expected to continue to improve. Profitability will consequently be determined by this and by the Ringgit's strength, which if sustained, will reflect on the revenue growth of the Group.
  The new dealerships that commenced operations recently, namely Volkswagen, Mitsubishi and Hino, are contributing positively and will provide an added boost to the performance of the Group for the remainder of the year.
  
  

ps: I have to give credit because I do remember some of my not so optimistic comments on this company before a couple of years ago. :D
ps/ps: Is this a stock tip? Well... I have no idea if you can lose money or not. So follow me not.

:D