PETALING JAYA: Hong Leong Industries Bhd
(HLIB) is preparing to commission a new automated tile production line next year, says its chairman Datuk Kwek Leng San.
“Once operational, the facility will manufacture premium-grade, larger-format tiles that appeal to higher-value market segments, further enriching our product mix and enhancing our market standing in the tile industry,” he said in the group’s annual report.
Kwek emphasised that HLIB’s initiative remains anchored in accelerating shareholder value creation and driving long-term capital enhancement for the group as a whole.
“Hence, the group remains proactive in identifying expansion opportunities to scale our core operations and broaden our income streams.”
HLIB is principally involved in the manufacture and sale of consumer products, comprising motorcycles, spare parts and ceramic tiles.
The group sells Yamaha motorcycles in Malaysia and Vietnam.
For its financial year ended June 30, 2025 (FY25), HLIB’s net profit rose to RM486.03mil from RM387.9mil, while revenue grew to RM3.57bil from RM3.11bil a year earlier.
HLIB also noted in its annual report that Vietnam’s motorcycle industry recorded robust growth of 12% in FY25, with total industry volume expanding from 2.5 million units in FY24 to 2.8 million units.
“This positive trend correlated with national economic momentum, with higher gross domestic product growth and a positive consumer outlook fuelling motorcycle sales and production volumes.”
HLIB said the competitive positioning of its unit, Yamaha Motor Vietnam Co Ltd (YMVN), is constrained by a dominant competitor with strong market presence and extensive access across sales and distribution channels.
“YMVN has responded by refining its manufacturing operations to reinforce both production efficiency and price competitiveness.”
As part of its ongoing operational rationalisation, HLIB said the painting process – currently conducted at the Soc Son and Noi Bai factories – will be fully consolidated at the Noi Bai Factory.
“Scheduled for completion by this month, this consolidation is expected to deliver cost efficiencies through integrated logistics, as well as more effective manpower management and utilisation.”
HLIB said YMVN is strategically positioned thanks to consistent investments in product development and adaptability to evolving market demands.
“In FY25, five motorcycle models including Janus, Grande, Neos, Sirius export model and XMAX, were refreshed with aesthetic updates and upgraded specifications to further enhance product desirability.
“Notably, the Yamaha Janus and Sirius export model achieved encouraging sales growth, reflecting a positive reception from the market.”
HLIB said YMVN intends to augment its existing product lineup with the launch of two new models, in addition to updating four additional existing models.
“The short-term prospects for the motorcycle industry in Vietnam may be tempered by external pressure, such as the tariffs imposed by the United States.
“To mitigate this risk, YMVN has formulated strategic measures aimed at reducing market concentration risk by diversifying its export portfolio.”
