Ho Hup 1Q earnings jump on progress billings

  • Corporate News
  • Thursday, 28 May 2020

KUALA LUMPUR: Ho Hup Construction Bhd's net profit increased two-fold to RM15.85mil in the first quarter ended March 31, 2020 as compared to the previous corresponding quarter due to the recognition of progressive billngs and sales in the property development division.

In the quarter under review, revenue surged 89% to RM80.3mil as compared to RM42.36mil in the comparative quarter.

The group said in a filing with Bursa malaysia that revenue in the property business more than tripled to RM67.93mil year-on-year due to the progressive billngs from the Phase 2 Park residence, sale of the Pavilion Bukit Jalil Mall and the progressive sale of Kota Kinabalu Crown development units.

However, the group's construction division did not perform as well with revenue plunging 59.2% to RM11.1mil due to the slower progression of rehabilitation work in Besut, bridges in Teluk Intan, the Yong Peng Road project and construction of the Techncial Vocational College in Kulai.

Meanwhile, the building material division was also impacted by the slower rehabilitation work in Besut with revenue falling 52.9% to RM4.6mil.

According to Ho Hup, the management expects the remainder of the year to be challenging owing to the Covid-19 pandemic and is realigning projects to protect its profitability.

Ho Hup ended 0.5 sen lower at 58 sen per share at the end of Thursday trading with 18.49 million shares exchanging hands.
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