Friday, May 6, 2011

Hap Seng Consolidated 1Q net profit doubles to RM82m

KUALA LUMPUR: Hap Senng Consolidated Bhd posted a strong set of earnings in the first quarter ended March 31, 2011, with net profit surging 108% to RM82.17 million in the first quarter ended March 31, 2011 from RM39.48 million a year ago.

It announced on Friday, May 6 revenue rose 28% to RM751.34 million from RM587.18 million while earnings per share doubled to 14.58 sen from 7.01 sen.

Managing director Datuk Edward Lee Ming Foo said: 'This is an excellent start for the 2011 financial year with all our business division registering strong revenue growth compared to the same period last year,' he said.

He said the strong first quarter performance was due to the superior execution of its growth plans.

'Capitalising on the strong underlying fundamentals of all our core businesses, we expect the performance of out group for the rest of the year to be consistent with that of the first quarter,' he said.

Hap Seng Consolidated group's revenue improve on the back of increased contributions across all the six business division, especially PLANTATION []s, automotives, fertilisers and credit financing divisions.

The plantations division reported an operating profit of RM78 million in 1Q11, which was a 55% increase from a year ago.

It said the higher operating profit was mainly due to higher average selling prices of crude palm oil (CPO) and palm kernel (PK) but mitigated by lower sales volume of CPO.

Average selling price of CPO and PK realised for the current quarter were RM3,542 and RM2,907 per tonne which were higher than the RM2,476 and RM1,359 per tonne respectively a year ago.

'The lower CPO sales volume for the current quarter under review was generally affected by seasonal cropping pattern and relatively wet weather conditions as well as lower mature area due to higher replanting undertaken during the period,' it said.

Its property segment recorded an operating profit of RM46 million, which was a 238% jump from a year ago, underpinned by higher project sales and disposal of investment PROPERTIES [].

Hap Seng Consolidated said the property division benefited from higher project sales and gain from disposal of two investment properties in Tawau, Sabah during the current quarter and recorded operating profit which was RM32.2 million (236%) higher than a year ago.

It said the credit financing division's operating profit was 50% higher than the preceding year corresponding quarter in tandem with the higher loan portfolio of approximately RM1.2 billion as compared to RM952 million as at the end of the preceding year corresponding quarter.

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