HLI's 2Q net profit dips 15.4% to RM35.6 mil

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KUALA LUMPUR (Jan 22): Hong Leong Industries Bhd’s (HLI) net profit for its second financial quarter ended Dec 31, 2014, dipped 15.41% to RM35.62 million or 11.55 sen a share, despite revenue having come in 7.25% higher at RM535.56 million.

For its six months ended Dec 31 last year, the group raked in a net profit of RM83.79 million, an increase of 7.17% from RM78.18 million a year earlier, while revenue rose 4.35% to RM1.06 billion.

In a filing with Bursa Malaysia, HLI (fundamental: 1.7; valuation: 2.4) said it recorded better margins in the first half, due to the higher average selling price in its industrial products segment and lower production costs in the consumer products segment. Meanwhile, there was higher profit contribution from an associated company.

In the note, HLI said following the sale of Hume Concrete Sdn Bhd to Hume Industries Bhd during the quarter under review, the results of Hume Concrete and its subsidiaries have been separately disclosed as discontinued operation.

Moving forward, HLI’s board expects the group’s performance for both the consumer products segment and industrial products segment to be satisfactory for the financial year ending June 30 this year.

HLI closed 2.35% higher at RM4.35 today, translating to a market capitalisation of RM1.39 billion.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations. Go to www.theedgemarkets.com for more details on a company's financial dashboard.)