Hock Seng Lee 2Q profit rises on higher construction and property development income

KUALA LUMPUR (Aug 22): Hock Seng Lee Bhd (HSL)'s second quarter net profit rose 16.39% to RM16.43 million, from RM14.12 million a year earlier, on the back of higher income from its construction and property development segments.

Earnings per share for the quarter ended June 30, 2019 rose to 2.99 sen, from 2.57 sen previously, the group said in a filing with Bursa Malaysia.

Quarterly revenue increased 13.72% to RM175.41 million from RM154.25 million a year ago.

The group declared a first interim dividend of one sen, unchanged from a year ago and payable on Oct 10.

HSL said its construction segment contributed 86% or RM151.38 million (RM138.69 million last year) of its quarterly revenue, with the balance 14% or RM24.03 million (RM15.56 million last year) coming from the property development segment.

The construction segment's profit before tax (PBT) in the quarter rose to RM14.96 million, from RM13.33 million a year ago, due to higher construction activities and improvements in profit margin.

As for the property development segment, the PBT registered during the quarter rose to RM6.85 million from RM5.52 million previously.

For the first half of the year, HSL said its net profit rose 9.41% to RM30.52 million, from RM27.9 million in the previous corresponding period.

Revenue for the period increased 12.63% to RM322.13 million from RM286 million a year ago.

HSL also announced the appointment of Datuk Sudarsuno Othman, 64, and Datuk Laura Lee Ngien Hion, 62, as independent and non-executive directors today.

HSL's share price closed three sen or 2.22% higher at RM1.38, valuing the group at RM804.09 million.

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