Ho Hup’s 2Q net profit more than doubles to RM17m

KUALA LUMPUR: Ho Hup Construction Company Bhd’s net profit for the second quarter ended June 30, 2014 (2QFY14) rose 164% to RM17.04 million from RM6.45 million in the previous corresponding quarter.

Revenue jumped 431.6% to RM88.5 million from RM16.65 million previously.

“In the current quarter, the group recorded its maiden revenue of RM11.9 million and gross profit of RM9.8 million contributed by Bukit Jalil Development Sdn Bhd’s entitlement from the joint development with Pioneer Haven Sdn Bhd, a wholly-owned subsidiary of Malton Bhd, on the 50-acre (20ha) Bukit Jalil land,” noted Ho Hup.

That, along with the progress of Ho Hup’s own development of Parcel A of Aurora Place, hadcontributed to an improved performance in the property development division as a whole.

Ho Hup said its construction division achieved profit after tax of RM5 million, compared to RM7.2 million in 2QFY13. “The higher profit in the corresponding quarter last year was mainly due to the extraordinary gain from the disposal of an associated company, Shanghai San Ho Hup Pile Co Ltd,” the group said in a filing with Bursa Malaysia yesterday.

For the six months ended June 30 (1HFY14), net profit rose 315.5% year-on-year to RM28.36 million while revenue jumped 328% to RM170.9 million.

Having been lifted from its Practice Note 17 status on May 5, Ho Hup said it is now actively pursuing and bidding for new projects in construction and property development.

Ho Hup had on June 5 entered into an equity joint-venture agreement with Zaykabar E&C Co Ltd to incorporate a company in Myanmar, to be known as Ho Hup (Myanmar) E&C Co Ltd to pursue and procure projects in the construction industry and property development in the country.

This article first appeared in The Edge Financial Daily, on August 26, 2014.