HLIB fourth-quarter earnings at RM39.84mil

MZ Mantizz 125 motorcycle, manufactured by MZ Motorrad, a subsidiary of Hong Leong Industries Berhad. - Filepic - Darran Tan/The Star

KUALA LUMPUR: Hong Leong Industries Bhd (HLIB) recorded a net profit of RM39.84mil in its fourth quarter (Q4) ended June 30, 2021, compared with a net loss of RM29.57mil in the previous corresponding period, mainly driven by higher sales across all product segments and improved operational efficiencies that helped to reduce cost.

In a filing with Bursa Malaysia yesterday, HLIB said revenue in the quarter rose to RM463.80mil from RM311.11mil a year earlier.

HLIB added that the group, excluding discontinued operations, had recorded a pre-tax profit of RM61mil compared with a pre-tax profit of RM162mil in the preceding quarter.

“The lower pre-tax profit for the quarter under review as compared with the preceding quarter was due to lower sales across all product segments.

“Sales was impacted by the movement control order imposed in the month of June during the quarter under review, coupled with lower profit contribution from associated companies,” it said.

For its financial year ended June 30, 2021, HLIB’s net profit grew to RM291.88mil from RM169.32mil in the previous corresponding period, while revenue increased to RM2.63bil from RM2.31bil a year earlier.

During its financial year, HLIB said it had distributed a first interim single tier dividend of 17 sen per share that was paid on Dec 23, 2020. The group then subsequently distributed a second interim single tier dividend of 35 sen per share, which was paid on June 25, 2021.

Commenting on its prospects, HLIB said the Covid-19 pandemic continued to be the greatest uncertainty to be managed.

“Barring any further movement control orders, the board expects the group’s performance for the financial year ending June 30, 2022 to be satisfactory,” it said. HLIB shares closed six sen lower to RM8.90 yesterday.