Hap Seng posts higher net profit of RM156.30mil in 1Q

KUALA LUMPUR: Hap Seng Consolidated Bhd registered a higher net profit of RM156.30 million in the first quarter ended March 31, 2022 (Q1 2022) from RM120.83 million last year, thanks to growth recorded in most segments.

Revenue increased to RM1.64 billion from RM1.28 billion previously, mainly attributable to higher revenue contribution from plantation, automotive, trading and building materials divisions, it said in a filing to Bursa Malaysia.

Hap Seng said the plantation division’s revenue doubled to RM242.2 million from RM121.3 million in Q1 2021 due to higher average selling prices realisation as well as higher sales volume of all palm products.

The average selling price of crude palm oil (CPO) and palm kernel (PK) during the quarter stood at RM6,019 per tonne and RM4,702 per tonne respectively, significantly higher than the preceding year corresponding quarter of RM3,854 per tonne for CPO and RM2,585 per tonne for PK.

CPO sales volume rose 28 per cent to 33,607 tonnes in Q1 2022 from Q1 2021, while PK sales volume was eight per cent higher at 7,319 tonnes.

Meanwhile, the automotive segment’s revenue for the current quarter at RM371.3 million rose 19 per cent from RM312.2 million in Q1 2021, amid improved performance in its passenger car and commercial vehicle segments.

The passenger car segment achieved a 22 per cent higher revenue with an 18 per cent increase in the number of cars sold, while the after-sales and services segment registered a nine per cent increase in revenue.

The commercial vehicle segment’s revenue increased eight per cent higher with higher sales of Actros.

Hap Seng said the trading division’s revenue soared 78 per cent to RM785.5 million versus RM441 million previously.

Revenue for the fertilisers trading business in Q1 2022 more than doubled to RM621.3 million from Q1 2021 as both Malaysian and Indonesian markets registered higher sales attributable to higher average selling prices due to global supply disruptions caused by the geopolitical tension in Europe.

In addition, the building materials division comprising quarry, asphalt and bricks businesses and trading of building materials by Hafary Holdings Ltd saw a 12 per cent rise in revenue to RM136.5 million against RM121.5 million in Q1 2021.

In contrast, the property and credit financing divisions both recorded lower revenues.

‘’Based on the foregoing and despite the uncertainties in the domestic and global economies, the board is cautiously optimistic of achieving satisfactory results for the financial year ending Dec 31, 2022,’’ Hap Seng said. - Bernama

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