KUALA LUMPUR, Aug 27 (Bernama) -- Hap Seng Consolidated Bhd’s net profit declined to RM170.13 million in the second quarter ended June 30, 2024 (2Q 2024) compared to RM661.89 million a year ago.
It said in a filing with Bursa Malaysia today that revenue also decreased by 14 per cent to RM1.42 billion from RM1.65 billion previously mainly due to lower revenue from credit financing, automotive and trading divisions.
Meanwhile, the group’s operating profit at RM310.2 million was 75 per cent higher than the preceding year’s corresponding quarter of RM176.9 million, benefitted from higher profit contribution from plantation, property and building materials divisions, it said.
During the current quarter, the plantation division’s revenue was higher at RM182.8 million (2Q 2023: RM168.8 million); property division’s revenue and operating profit were significantly higher at RM252 million and RM151 million respectively (2Q 2023: RM121.6 million and RM24.3 million); but, under the credit financing division, total loan base has reduced to RM2.3 billion (2Q 2023: RM2.61 billion).
Meanwhile, for the current quarter, it said the automotive division’s revenue was lower at RM121.6 million (2Q 2023: RM398.8 million); trading division’s revenue was lower at RM642 million (2Q 2023: RM785.2 million); however building materials division’s revenue was higher at RM267.1 million (2Q 2023: RM230.5 million).
For the first half year ended June 30, 2024 (1H 2024), Hap Seng Consolidated recorded a lower net profit of RM307.41 million against RM712.66 million in 1H 2023, while revenue fell to RM2.75 billion from RM3.24 billion previously.
On prospects, it said CPO prices are expected to be under pressure, particularly during its high cropping season.
“Palm oil producers continued to face inflationary pressures and high production costs.
“Nevertheless, the group’s plantation division continues to put concerted efforts to improve the overall efficiencies of its operations to mitigate the high cost of production while practising good plantation husbandry to further improve fresh fruit bunch yield and extraction rates,” it said.
It said the board is cautiously optimistic of achieving satisfactory results for the financial year ending Dec 31, 2024, according to the filing.
-- BERNAMA
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