The sharp increase in the global commodity prices and the government’s gradual withdrawal of food and fuel subsidies, which put pressure on the group’s input costs, remains a concern.
KUALA LUMPUR: Hup Seng Industries Bhd
, which posted a lower net profit of RM3.03mil in the second quarter ended June 30 (2Q22), expects the operating environment to remain highly competitive this year.
“The sharp increase in the global commodity prices and the government’s gradual withdrawal of food and fuel subsidies, which put pressure on the group’s input costs, remains a concern.
“The group will monitor closely the development of commodity prices, evaluate and adjust its pricing strategies, and/or resizing major products when the need arises.
“The group will leverage operational efficiencies and cost-saving initiatives so as to achieve a most satisfactory performance,” Hup Seng said in the notes accompanying its 2Q22 financial report.
In 2Q, Hup Seng’s revenue rose 11% to RM73.8mil, mainly due to an increase in selling prices. Its earnings per share for the quarter stood at 0.38 sen from 0.45 sen a year earlier.
The board of directors has recommended an interim single-tier dividend of one sen per ordinary share in respect of the year ending Dec 31. The entitlement date will be announced in due course.
For the first six months to June 30, Hup Seng posted a net profit of RM9.8mil, down 27.1% from last year. Revenue for that period climbed to RM153.1mil from RM149.24mil previously.
