Hap Seng Consolidated 2Q net profit up 4%

KUALA LUMPUR (Aug 25): Hap Seng Consolidated Bhd posted a net profit of RM629.72 million, or 25.29 sen per share, for the second quarter ended June 30, 2017 (2QFY17), up 4% from RM606.6 million, or 26.26 sen per share, in 2QFY16.

Quarterly revenue grew 7% to RM1.31 billion from RM1.22 billion a year earlier.

The group attributed the better earnings performance to higher contribution from all divisions, except for the automotive division.

The plantation division benefitted from higher average selling prices and sales volume of crude palm oil, translating into a 41% growth in operating profit to RM40.4 million for the quarter under review.

The property division saw a 53% growth in operating profit to RM130 million, contributed by the sale of non-strategic properties.

The building material division saw a 19% increase in revenue to RM370 million for the quarter, mainly due to higher revenue contribution by Hafary Holdings Ltd and the inclusion of contribution from Malaysian Mosaics Sdn Bhd which was acquired in May.

Automotive reported a lower profit contribution, down 29% to RM5.2 million, as the group needed to fund its expansion of four new Autohauses.

For the first half of the financial year (1HFY17), Hap Seng’s net profit rose 5% to RM784.1 million from RM746.81 million in 1HFY16, while revenue expanded 9% to RM2.48 billion from RM2.27 billion.

This article first appeared in The Edge Financial Daily, on Aug 25, 2017.

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