Hap Seng records higher 3Q18 profit

By TMR / Pic By BLOOMBERG

Hap Seng Consolidated Bhd recorded a higher net profit of RM190.6 million for the third quarter ended Sept 30, 2018 (3Q18), compared to RM182.5 million in the preceding year’s corresponding quarter as it benefitted from tax incentives in respect of investment tax allowance on the plantation division’s biogas plant.

Revenue grew 26% year-on-year (YoY) to RM1.76 billion from higher contributions from all its divisions except for the plantation and building materials divisions.

In a filing exchange yesterday, Hap Seng noted the plantation division’s revenue was 42% lower YoY due to lower average selling prices and sales volume of crude palm oil (CPO) and palm kernel (PK).

The property division saw its 3Q18 revenue rise 30% YoY to RM387.6 million.

The vehicle segment posted a 36% increase in number of cars sold, while the trading division, which comprises the fertilisers trading and general trading businesses, achieved total revenue and operating profit of RM628.6 million and RM16.6 million respectively for the current quarter.

The credit financing division recorded a 43% growth in its loan portfolio at RM3.8 billion and the building materials division saw its revenue fall from RM280.7 million to RM252.8 million, the group’s filing noted. — TMR

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