PETALING JAYA: One-stop plastic solution provider and property developer HIL Industries Bhd on Nov 23 reported its net profit for the nine months ended Sept 30, 2022 (9MFY22) rose 14.9% to RM20.5 million, from RM17.9 million previously, on strong demand for automotive parts components from its major customers.
Earnings per share rose to 6.34 sen from 5.44 sen previously.
Revenue for the period was up 28.3% to RM125.2 million from RM97.6 million a year earlier, attributed to higher revenue contribution from its manufacturing division.
For 9MFY22, the manufacturing division posted solid results with revenue surging 72.9% to RM85.1 million from RM49.2 million a year ago due to increased orders from its major customers.
HIL Industries’ manufacturing division is involved in plastic injection moulding which produces plastic original equipment manufacturer (OEM) parts mainly for automotive and IT-related products.
For the three months ended Sept 30, 2022 (Q3FY22), HIL Industries’ net profit contracted 4% to RM7.2 million from RM7.5 million a year ago due to lower revenue contribution from the property division as a result of lower profit recognition for the ongoing project and the delay in the launching of several projects.
Revenue for the quarter rose 16.7% to RM43.5 million from RM37.3 million previously on increased orders for automotive parts components from its major customers.
HIL Industries managing director Datuk Milton Ng said the surge in new vehicles bookings before the end of the sales and service tax exemption for new vehicles coupled with launches of several new car models by its major customers have lifted the company’s manufacturing business.
He said the manufacturing division is expected to continue to do well with the existing backlog of orders of cars which is expected to last until late 2023.
“We are fortunate that most of our main customers’ orders have not been severely affected by the worldwide shortage of components,” he added.
Ng anticipates the manufacturing division will continue to be the main revenue contributor to the group in FY22.
As for the property division, the company still expects healthy contributions from the on-going Amverton Links Phase 2 and sale of the completed Amverton Greens project in Bukit Kemuning.
HIL Industries had in September done a soft launch for 100 units of townhouses namely Garden Homes at Amverton Links in Klang. The “build first, then sell” concept project is expected to contribute RM43 million in sales.
HIL Industries is also targeting to launch property developments with a gross development value of RM275.7 million by first quarter of 2023.
Among the projects it will be launching are 154 units of stratified double-storey terrace houses in Sungai Buloh and 141 units stratified bungalows in Amverton Cove, Carey Island.
