Hap Seng Consolidated net profit jumps 5-fold to RM661.9mil

KUALA LUMPUR: Hap Seng Consolidated Bhd is optimistic of achieving satisfactory results for the financial year ending Dec 31, 2023 (FY23).

Hap Seng said its trading division expects fertilizers prices to stabilise in the second half of the year, bolstered by a recovery in seasonal demand in Brazil, India and Southeast Asia. However, any escalation of geopolitical tensions in Eastern Europe may disrupt Russian and Belarussian exports and may trigger a price increase.

“General trading business is expected to benefit from sustained growth in the Malaysian construction sector, boosted by the increase of construction activities for both residential and non-residential developments. The division will continue to focus on improving trading margins and managing inventories and receivables to mitigate operational risks and protect its profitability,” it said in the notes accompanying its financial results.

The building materials division expects its quarry, asphalt, and bricks businesses to continue to benefit from the ongoing major projects in East Malaysia and Brunei.

Its Singapore-listed Hafary Holdings Ltd expects demand in both its general and project sectors to be underpinned by the increase in private residential sales and resale transactions in the second half of the year, and the strong pipeline of public housing projects in Singapore as the Housing Development Board continues to ramp-up Build- To-Order flats supply.

In the second quarter ended June 30, Hap Seng’s net profit rose five-fold to RM661.9mil, or earnings per share of 26.59 sen against RM132.6mil, or 5.33 sen a year ago. Revenue, however, fell to RM1.65bil from RM1.7bil.

For the first half, it posted a net profit of RM712.6mil, up from RM288.9mil while revenue dipped marginally to RM3.24bil versus RM3.35bil previously.