PETALING JAYA: Harn Len Corp Bhd
will maintain prudence as it continues to chart out various business strategies going forward, including efforts to increase efficiency and cost rationalisation, to counter any negative impact to its business operations.
The group believes that Indonesian biofuel mandate and the effect of La Niña weather is likely to support the price of crude palm oil (CPO) despite the current high stockpile, while predicting average CPO price for 2026 to remain above RM4,000 per tonne.
Releasing its results for the second quarter ended November 30 (2Q26) yesterday, Harn Len saw net profit more than double year-on-year (y-o-y) to RM15mil, as revenue also rose 10.9% to RM95.9mil.
On a cumulative basis, the group posted a 65.6% y-o-y surge in bottomline to RM19mil, driven by a 10.3% improvement in turnover to RM175.5mil. This means earnings per share for the first half of the financial year ending May 2026 (1H26) stood at 3.09 sen, compared to 2.03 sen a year ago.
Harn Len said the plantation segment contributed to 99% of its revenue for 1H26, before adding that the earnings improvement was primarily due to favourable commodity prices despite flattish volumes.
Meanwhile, the group noted that its “property & other operations” division recorded an operating loss of about RM4mil, which it said was mainly due to low rental income from a commercial building which was not sufficient to cover the increasing operating and maintenance cost of the building.
“The occupancy rates of the offices and shops in the commercial building remained low for the period under review due to subdued demand for high-rise office spaces and shops in the surrounding vicinity and the ongoing Johor-Singapore Rapid Transit System Link system project which caused traffic congestion and roads closure surrounding the commercial building,” said Harn Len in a filing to Bursa Malaysia.
