Hap Seng Q3 net profit jumps 48% to RM563.75m

KUALA LUMPUR: Hap Seng Consolidated Bhd’s net profit for the third quarter ended Sept 30, 2022 (Q3’22) jumped 48% to RM563.75 million from RM381.55 million in the previous corresponding quarter.

Revenue increased 21%t to RM1.97 billion from RM1.63 billion previously, mainly attributable to higher revenue contribution from plantation, automotive, trading and building materials divisions.

In a filing with Bursa Malaysia on Nov 24, the conglomerate said the plantation division’s revenue for the current quarter at RM182 million was 5% higher than the RM173.6 million recorded in Q3’21, mainly attributable to the higher average selling price of crude palm oil (CPO) but dampened by lower sales volume of all palm products.

“The average selling price of CPO for the current quarter was higher at RM5,219 per tonne as compared with RM4,341 per tonne in Q3’21. The average selling price of palm kernel (PK) in Q3’22 was RM2,543 per tonne versus RM2,615 in the same quarter last year.

“Sales volume of CPO and PK for the current quarter were 31,129 tonnes and 6,524 tonnes respectively, which is 10% and 9% lower than the preceding year corresponding quarter in tandem with lower production,” it said.

Hap Seng said its automotive division’s revenue for the current quarter was 78% higher at RM470.4 million compared to RM264.4 million before, with higher revenue from both its passenger car and commercial vehicle segments.

It said the trading division’s revenue for the current quarter was at RM1.03 billion, more than doubled that of the preceding year’s corresponding quarter of RM491.6 million, with higher revenue from all its businesses.

“The building materials division, which comprises the quarry, asphalt and bricks businesses and building materials trading, rose by 45% in Q3 2022 to RM192.3 million from RM133 million last year with higher contribution from both its business segments,” it said.

Hap Seng said it has also completed the disposal of 100% equity interest in HS Credit (Birmingham) Ltd resulting in a gain of RM425.1 million in the current quarter.

“Based on the foregoing and despite the uncertainties in the domestic and global economies, the board is cautiously optimistic of achieving satisfactory results for the financial year ending Dec 31, 2022,” it added. – Bernama