HIL Industries 3Q net profit slips 2% to RM7.42m on lower profit recognition

KUALA LUMPUR (Nov 23): HIL Industries Bhd's net profit for the third quarter ended Sept 30, 2022 slipped 2.2% to RM7.42 million from RM7.59 million a year earlier, due to lower profit recognition for ongoing projects.

In a Bursa Malaysia filing on Wednesday (Nov 23), HIL said revenue for the quarter rose 16.7% to RM43.55 million from RM37.31 million a year prior, primarily due to increased orders from automotive customers.

Earnings per share was 2.24 sen versus 2.29 sen previously.

The company did not declare any dividend.

For the cumulative nine months ended Sept 30, HIL said its net profit rose to RM21.04 million versus RM18.07 million earlier, on the back of revenue of RM125.17 million against RM97.58 million.

Reviewing its performance, HIL said the overall manufacturing segment registered an increase in revenue of 72.87% and an increase in results of 418.67% for the current financial period-to-date as compared to the corresponding financial period-to-date in the preceding financial year.

It said the property development and management segment registered a decrease in revenue of 17.42% year-on-year (y-o-y) and a decrease in results of 53.51% y-o-y for the current financial period-to-date.

It said the decrease in the revenue and results for this financial period were due to lower profit recognition for ongoing projects, and the delay in the launching of several new projects.

On its prospects, HIL said its manufacturing division's performance would be dependent on orders from existing customers and the gradual recovery of the global economy.

It said this division is expected to continue to do well with the existing backlog of orders of cars which is expected to last until late 2023.

As for the property division, it said revenue will be mainly from its ongoing Amverton Links Phase 2 as well as its completed project, Amverton Greens in Bukit Kemuning.

The company said it had also recently done a soft launch of 100 townhouses in mid-September 2022.

Barring any unforeseen circumstances, HIL said it expects to continue to perform well in the coming financial year 2022.

At the midday break on Wednesday, HIL rose 5.59% or 5.5 sen to RM1.04 with 20,300 shares traded.