Hwang Capital 4Q net profit falls 56% after disposing several businesses and non-core assets

by **Cals** Fri 26 Sep 2014, 08:33

Business & Markets 2014

Written by Shalini Kumar of theedgemalaysia.com

Thursday, 25 September 2014 20:08

KUALA LUMPUR (Sept 25): Hwang Capital (Malaysia) Bhd’s net profit for its fourth quarter ended July 31, 2014 (4QFY14) fell 56% to RM9.41 million from RM21.2 million a year ago, as revenue fell 88.36% to RM16.1 million from RM138.1 million after the group disposed of its core financial businesses and non-care assets earlier this year.
For the full year, the group posted a net profit of RM456.7 million, up over eight times from RM51.2 million in FY13; even as revenue declined 26.34% to RM348.7 million from RM473.4 million in the same period.
Meanwhile, pretax profit of its continuing operations for the full year FY14 stood at RM17.9 million, a 77% year-on-year increase compared to the RM10.1 million it recorded in FY13.
In a filing with Bursa Malaysia this evening, Hwang Capital, formerly known as Hwang-DBS (Malaysia) Bhd, said the full year’s improved earnings were largely due to an increase in income from investments of proceeds from the disposals of the group’s core financial businesses as well as net gain on disposals of securities, and lower loan loss impairment.
Hwang Capital also proposed a final single-tier dividend of 2.5 sen per share for FY14.
Looking ahead, the group said it was still in the process of identifying potential new businesses and expected its financial performance for the year ahead to be "satisfactory".