Hap Seng Consolidated 4Q profit down 62% as key segments drag

• For the full-year, Hap Seng’s net profit fell 15.81% to RM800.33 million as compared to RM950.66 million in FY2022, as revenue slided 14.41% to RM6.09 billion from RM7.11 billion last year.

KUALA LUMPUR (Feb 28): Hap Seng Consolidated Bhd’s fourth quarter ended Dec 31, 2023 (4QFY2023) net profit fell 61.88% to RM37.36 million, from RM98.02 million a year ago, due to lower operating profit dragged by lower profit contribution from all divisions except building materials division.

Operating profit in the quarter dropped 24% to RM170.6 million from RM223.3 million in 4QFY2022. Earnings per share fell 1.50 sen from 3.94 sen a year earlier, according to the group’s filing on Wednesday.

Quarterly revenue declined 26.91% to RM1.31 billion against RM1.79 billion in the previous year, mainly due to lower revenue from its credit financing, automotive and trading divisions.

For the full-year, Hap Seng’s net profit fell 15.81% to RM800.33 million as compared to RM950.66 million in FY2022, as revenue slided 14.41% to RM6.09 billion from RM7.11 billion last year.

Despite the lower FY2023 earnings, Hap Seng, which trades in fertilisers and building materials and sells Mercedes-Benz vehicles, said that it is cautiously optimistic of achieving satisfactory results for FY2024.

Shares in Hap Seng finished 10 sen or 2.12% lower to RM4.62 on Wednesday, giving the group a market capitalisation at RM11.5 billion. The counter has fallen 23.13% over the past one year.

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