KUALA LUMPUR: Hap Seng Consolidated Bhd
's net profit for the first quarter ended March 31, 2023 (1Q FY2023) fell to RM50.77 million from RM156.30 million recorded for the same period last year.
In a Bursa Malaysia filing today, the diversified group in plantation, property, credit financing, automotive, trading and building materials said revenue for the quarter reviewed also declined to RM1.59 billion from RM1.65 billion in the corresponding quarter previously due to decreased revenue from plantation, property and trading divisions.
"Profit attributable to owners of the company and basic earnings per share for the current quarter at RM50.8 million and 2.04 sen respectively were both 68 per cent below the preceding year’s corresponding quarter,” it said.
On prospects, Hap Seng said that high production costs continued to be a challenge for the plantation division due to inflationary pressures and the high prices of fertiliser, diesel and other input materials as well as higher labour cost.
"Nevertheless, to mitigate this, the division continues to focus on improving the overall cost efficiencies of its operations and put concerted efforts to improve fresh fruit bunches yield and oil extraction rates,” it said.
Meanwhile, the Malaysian property market is expected to remain challenging in 2023 amid the projection of moderately lower economic growth and generally cautious homebuyers’ sentiments.
"The group’s property division will continue to intensify its sales and marketing activities with attractive packages and sales promotion to drive property sales while the division’s hospitality segment is expected to benefit from the growth in the tourism sector following the re-opening of borders and lifting of travel restriction globally,” it said.
On the other hand, the trading division expects its fertilisers trading business in all geographical markets to operate in a challenging and competitive business environment.
Based on the challenging business environment and uncertainties in the global economies, the company is cautiously optimistic of achieving satisfactory results for the financial year ending Dec 31, 2023.
The first interim dividend of 10 sen per ordinary share under the single-tier system for the financial year ending Dec 31, 2023, will be payable in cash on June 22, 2023.
At close of Bursa Malaysia today, Hap Seng shares closed lower by 0.24 per cent or one sen to RM4.23 with 1.05 million shares traded. - Bernama
