Haily Group posts net profit of RM2.8mil in 1Q

Haily founder and executive director See Tin Hai

KUALA LUMPUR: Haily Group Bhd, which is en route to a listing on the ACE Market of Bursa Malaysia on July 21, posted a net profit of RM2.79mil in the first quarter ended March 31.

In a statement, Haily said it recorded a revenue of RM43.3mil. This was mainly contributed from the group’s construction of residential and non-residential buildings which accounted for RM43.21mil or 99.80% of the total revenue, while the balance of RM90,000 was derived from its civil engineering construction works and rental of construction machinery and equipment.

The board also declared an interim dividend of 1.68 sen per ordinary share, amounting to a total payout of RM2.99mil, in respect of the financial year ending Dec 31, 2021, on an entitlement date and payment date to be determined and announced after Haily's listing.

Haily founder and executive director See Tin Hai said that the group has weathered the cloudy economic conditions well, and that the unbilled order book is expected to continue generating revenue until 2023.

As at June 10, Haily had 18 on-going building construction projects as well as two civil engineering related construction projects.

Its total secured contract value and unbilled contract value stood at RM460.04mil and RM249.58mil respectively.

“In light of the uncertainties arising from Covid-19, the group remains cautiously optimistic of its prospects and the outlook of the construction industry with the expected recovery by the end of the current financial year.

“Nevertheless, the group has persevered thus far and the group views that its financial results for FY21 will remain favourable,” See said.

Of the RM20.40mil to be raised from its public issue, Haily plans to use RM4.20mil (20.59%) for the purchase of construction machinery, equipment as well as new contract management and accounting software and office equipment, RM6mil (29.41%) for working capital for construction projects, RM7mil (34.31%) for repayment of bank borrowings, and the remaining RM3.2mil (15.69%) for listing expenses.