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KUALA LUMPUR: Hap Seng Consolidated Bhd (Hap Seng Group) recorded a pre-tax profit of RM172.8 million in its financial year (FY) ended Dec 31, 2009.
This was achieved on the back of group net revenue of RM2.5 billion. The group’s operating profit was registered at RM193.8 million and its profit after tax was recorded at RM149.3 million for the year under review.
“The group’s 2009 financial year was by any measure a challenging one. The effects of the global economic crisis had to a certain extent impacted the performance of our core businesses across the board,” said Hap Seng’s group managing director, Datuk Edward Lee Ming Foo in a statement on May 27.
“Nevertheless, in anticipation of the challenging operating environment, the group had undertaken strategic measures to ensure that our operating costs are well-managed and the group’s balance sheet remains strong.
“Our performance during the year under review was a reflection of these measures as well as the resilience of the group and our commitment to keep the long-term interest of our shareholders a priority,” he added.
Overall, earnings per share attributable to shareholders for the year under review was 17.79 sen. The group’s gearing ratio (net of cash), as at Dec 31, 2009, improved to 0.59 from 0.91 a year ago. Its net assets also increased to RM2.34 billion from RM2.3 billion last year.
“Moving forward, we expect 2010 to be a better year. The government’s prudent fiscal management and pro-active initiatives to stimulate the economy have put the country well on the path of recovery. This, coupled with the improving outlook of commodity prices, will invariably bode well for our group,” he noted.
The group’s Property Holding and Development Division is also expected to continue to perform well as it remains focused on the development of mixed and residential properties in Sabah and Peninsular Malaysia.
“We are especially encouraged by the overwhelming response we have received for D’Alpinia, our maiden 76-acre project in Peninsular Malaysia.
“Given its impressive take-up rate for the first two phases launched at the end-2009, D’Alpinia is set to become an important contributor to the Division’s bottom-line, especially when it unveils more attractive products in this ‘build-then-sell’ development,” he said.
Hap Seng Group’s Credit Financing Division is set to record higher loans growth in the current financial year due to improving business confidence levels.
