PETALING JAYA: Hup Seng Industries Bhd
said the operating environment is expected to remain challenging due to intense competition in the domestic market, cautious consumer spending and continued uncertainty surrounding input costs.
For the second quarter ended June 30, 2026, the group’s net profit surged by 21% year-on-year (y-o-y) to RM10.34mil or earnings per share of 1.29 sen, mainly due to lower input costs of certain major materials and higher revenue recorded. Revenue for the quarter increased by 1% y-o-y to RM85.98mil.
For the six-month period ended June 30, 2026 (6M26), the group’s net profit was up by 10% y-o-y or earnings per share of 2.62 sen, due to lower costs in certain raw material prices.
Revenue for 6M26 saw an uptick of 0.4% y-o-y to RM177.20mil. The group said domestic sales declined by 3% or RM3.8mil mainly from all channels except retails. In contrast, export market sales increased 14% or RM4.4mil driven mainly by stronger demand from Myanmar, Thailand, the US, Japan and Indonesia, despite the translation impact from the stronger ringgit against certain export currencies. The company said this more than offset the decline in domestic sales, thereby contributing to marginal overall revenue growth.
Hup Seng said the group will continue to focus on operational efficiency and cost management to mitigate the impact of fluctuations in raw material prices and other operating costs. It will also continue to pursue product innovation, expand export opportunities and strengthen its distribution network to sustain its market share.
Hup Seng declared a second interim single-tier dividend of 1 sen per ordinary share in respect of the year ending Dec 31, 2026, for the financial quarter under review. The group said the entitlement date will be announced in due course.
