Hong Leong Capital's 2Q net profit jumps 41.2%

by **Cals** Wed 24 Feb 2016, 03:47

Hong Leong Capital's 2Q net profit jumps 41.2%

By Yimie Yong / theedgemarkets.com | February 23, 2016 : 3:51 PM MYT

KUALA LUMPUR (Feb 23): Hong Leong Capital Bhd's (HLCap) net profit for the second quarter ended Dec 31, 2015 (2QFY16) jumped 41.2% to RM22.31 million or 9.25 sen a share from RM15.8 million or 6.55 sen a share a year ago, due to higher contribution from its investment banking and stockbroking segment.

Revenue rose 13.06% to RM71.96 million from RM63.65 million in 2QFY15.

In a filing with Bursa Malaysia today, HLCap said the investment banking and stockbroking segment recorded a higher profit before tax (PBT) of RM20.4 million for 2QFY16 compared to RM14.5 million a year ago, mainly due to higher contribution from its debt markets and stockbroking divisions, offset by lower contribution from its treasury and markets division.

"Fund management and unit trust management recorded a marginal higher PBT of RM60,000 in 2QFY16 compared with RM55,000 in 2QFY15, mainly due to higher net contribution from management fee income," it added.

For the six-month period ended Dec 31, 2015 (1HFY16), HLCap's net profit increased 11.07% to RM37.92 million or 15.72 sen per share from RM34.14 million or 14.18 sen per share in 1HFY15, mainly due to higher contribution from investment banking and stockbroking segment, offset by lower contribution from its fund management and unit trust management segment.

Revenue was up 3.59% at RM131.13 million versus RM126.59 million in 1HFY15.

On its prospects, HLCap said the group is expected to show satisfactory performance in the current financial year ending June 30, 2016 (FY16) with improving profitability via diversification of income source from more extensive investment banking activities.

Shares of HLCap were suspended since March 26 last year as the company does not meet the listing requirements which required the listed issuer must ensure that at least 25% of its total listed shares are in the hands of public shareholders.

The public shareholding spread of the company as at Dec 31, 2015 was at 18.67%.

According to its last closing price of RM10.20, the company has a market capitalisation of RM2.49 billion.