Hock Seng Lee 2Q net profit falls 16% y-o-y to RM19m

by **Cals** Wed 27 Aug 2014, 23:14

Business & Markets 2014

Written by Ahmad Naqib Idris Adzman Shah of theedgemalaysia.com

Wednesday, 27 August 2014 14:09

KUALA LUMPUR (August 27): Hock Seng Lee Bhd’s (HSL) net profit fell 16% to RM19.0 million for its second financial quarter ended June 30, 2014 (2QFY14), from RM22.6 million in the previous year’s corresponding quarter (2QFY13).

Revenue was flat at RM140.2 million versus RM140.4 million a year earlier.

The company declared a first interim single-tier tax exempt dividend of 1.2 sen per share for the year ending Dec 31, 2014.

In its filing to the exchange Wednesday, HSL said its construction segment reported a 10% increase in revenue to RM132.20 million, while net profit was flat at RM22.98 million.

On the other hand, its property development segment posted lower revenue and net profit before tax, when compared with the “higher property sales in 2013, arising from new project launches”.

For the six months to June 30, net profit was lower at RM35.4 million, compared to RM42.1 million a year earlier, while revenue fell to RM256.2 million from RM275.5 million.

For its current financial year, the group will pursue infrastructure projects, focusing on works requiring marine engineering aspects.

“We are still actively bidding for a range of contracts including several in the SCORE growth node towns of Samalaju, Mukah and Tanjung Manis.

“There is an urgent need for water supply, access roads and other essential infrastructure in these areas,” said Datuk Paul Yu, HSL's managing director.

Moreover, its property development segment has lined up further residential and industrial developments to be launched during 2014.

HSL was named the 'Most Profitable Company' and was the second runner-up in terms of greatest profit growth and best performing stock at the recent The Edge Billion Ringgit Club awards.