KUALA LUMPUR: Hock Seng Lee Bhd's (HSL) earnings for the second quarter ended June 30,2017, fell 21% to RM9.52mil from the year-ago period. Revenue for the quarter was marginally lower at RM106.39mil from RM107.05mil in the previous corresponding period.
Earnings per share stood at 1.73 sen in the current quarter.
In the construction segment, revenue decreased 7% to RM89.64mil from the same quarter last year while profit before tax decreased 46% to RM6.92mil.
"The lower revenue was due to timing of progress claims for construction works as major contract works are at their initial stages of execution. The profit margin for the works executed during the quarter was also lower," the company said in its stock exchange filing on Tuesday.
In the property development segment, revenue for the current quarter rose 14% to RM16.75mil year-on-year "due to recognition of sales from new launches while profit margins remained stable". Profit before tax was 44.7% higher at RM3.24mil.
The company noted that it has an order book of RM3bil but will continue to bid for projects related to its core business in infrastructure works.
"The Sarawak Corridor of Renewable Energy (SCORE) initiative as well as the forces of industralisation and urbanisation provides further contract opportunities for HSL in the key SCORE growth node towns of Tanjung Manis, Mukah and Samalaju and the major cities of Sarawak," it said.
HSL foresees the property development segment, with a variety of products on offer, will make a greater impact on the business of the group in 2017.
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