Hwang Capital’s net profit down 7% in second quarter

PETALING JAYA: Hwang Capital (Malaysia) Bhd’s net profit for the second quarter ended Jan 31, 2017 fell 7.20% to RM9.01 million from RM9.71 million a year ago due to lower profits across all segments.
In a filing with Bursa Malaysia yesterday, the group reported a 9% drop in pre-tax profit during the quarter to RM10.7 million from RM11.7 million a year ago, with the money lending, investment holding and property investment segments all posting lower pre-tax profits.
Revenue for the quarter fell 12.88% to RM14.10 million from RM16.19 million a year ago due to the reduction in interest income and fee-based income from moneylending activities as well as the decrease in rental income from property letting.
For the six months period, Hwang Capital’s net profit fell 1.21% to RM18.76 million from RM18.99 million a year ago while revenue fell 12.85% to RM28.42 million from RM32.60 million a year ago.
Moving forward, the group said it will remain cautious and selective on asset quality in its lending activities and in exploring alternative credit financing solutions, amid the challenging economic outlook and weak consumer sentiment.
It will also focus on securing the repayments of its existing loans/financing portfolio with continuing debt monitoring and collection efforts in place.
“The investment holding segment will continue to review and diversify its investment portfolio from time to time, to improve on returns and to minimise portfolio concentration risks. No significant change in the operations of the property investment segment is expected,” it said.
The group also said it will continue to seek and evaluate viable businesses to complement its existing business and expects to perform satisfactorily for the rest of the financial year ending July 31, 2017.