Hap Seng Consolidated declares 20 sen dividend as 3Q profit jumps 48%

KUALA LUMPUR (Nov 24): Hap Seng Consolidated Bhd's third quarter net profit jumped 47.75% year-on-year to RM563.75 million from RM381.55 million, following the completion of its 100% stake disposal in HS Credit (Birmingham) Ltd in August, from which it gained RM425.1 million.

The 3QFY2022 net profit for the three months ended Sept 30 was also achieved on the back of a 20.86% rise in revenue to RM1.97 billion from RM1.63 billion in the previous year's corresponding quarter, driven by stronger contribution from plantation, automotive, trading and building materials divisions.

Earnings per share expanded to 22.64 sen from 15.33 sen, its bourse filing showed. The diversified group declared a second interim dividend of 20 sen per share, payable on Dec 21.

Notably, the biggest revenue jump was in its trading segment, which saw topline more than doubling to RM1.03 billion from RM491.6 million, with higher contribution from all its businesses such as fertilisers, general trading and the ceramic tiles businesses.

This was followed by its automation segment, where revenue shot up 78% to RM470.4 million from RM264.4 million, driven by higher contribution from both its passenger car and commercial vehicle segments. The building materials division's revenue grew 45% to RM192.3 million from RM133 million previously.

Plantation, meanwhile, posted a 5% increase in revenue to RM182 million on higher average selling price of crude palm oil, partially offset by lower sales volume of all palm products.

Net profit for the nine months ended Sept 30 jumped 42.13% to RM852.63 million from RM599.9 million a year ago, as revenue expanded 27.46% to RM5.32 billion from RM4.17 billion. Earnings per share for the period rose to 34.25 sen from 24.1 sen previously.

Looking ahead, Hap Seng’s board is cautiously optimistic of achieving satisfactory results for FY2022 ending Dec 31, despite uncertainties in the domestic and global economies.

Hap Seng shares closed 32 sen or 4.92% higher at RM6.83 on Thursday, giving the group a market capitalisation of RM17 billion. It is currently trading at a historical price-to-earnings ratio of 17.51 times, offering a dividend yield of 5.12%.