Hiap Huat returns to the black in Q2

PETALING JAYA: Hiap Huat Bhd returned to the black in the second quarter ended June 30, after registering a net profit of RM331,000 against a net loss of RM182,000 recorded in the same quarter last year, due to an increase in revenue and reduction in selling and distribution as well as finance cost.

The waste management and industrial waste recycling company's revenue increased by 63.3% in the quarter under review to RM8.67 million from RM5.31 million, driven mainly by the increase in sales of recycle oil.

The stock closed unchanged at 10.5 sen Tuesday, with some 565,800 shares done. The stock price which has gained 31% year-to-date, has a market capitalisation of almost RM35 million.

"The outlook for the financial year ending December 31 remains challenging due to uncertainty of the oil prices and global economy. This in turn may affect the demand for the group's products and services and correspondingly assert a downward pressure on the group's revenue and margins," its board of directors said in a Bursa Malaysia filing.

The group is also undertaking continuous enhancements in production efficiencies, overhead and production cost management.

It is also looking to enhance its product offerings in the overseas market, in view of generating better sales and profitability.

The group saw an improvement in earnings for the first six months of the financial year, after registering a net profit of RM475,000 against a net loss of RM709,000 in the same period last year.

Revenue increased by 98.6% in the first half of the current financial year to RM19.92 million, against the RM10.03 million recorded last year.