KUALA LUMPUR (May 25): Hap Seng Consolidated Bhd’s net profit slipped 67.52% to RM50.77 million in the first quarter ended March 31, 2023 (1QFY2023) against RM156.30 million in the same quarter a year earlier (1QFY2022), due to lower revenue reported by its business segments.

Its basic earnings per share fell to 2.04 sen from 6.28 sen, according to its Bursa filing.

Nevertheless, the group announced its first interim dividend of 10 sen per share, payable on June 22. Its ex-date falls on June 8.

The dividend is tax exempted for shareholders in respect of the financial year ending Dec 31, 2023.

Quarterly revenue fell by 3.63% to RM1.59 billion from RM1.65 billion, as its declining revenue came from the plantation, property and trading divisions.

The plantation segment's revenue dropped 33.98% to RM159.93 million versus RM242.15 million due to lower average selling price of all palm products.

Revenue from its property division also fell 25.11% to RM98.15 million versus RM131.06 million, as the division faced challenges in a subdued property market and lower units sold in East Malaysia, offset by higher project revenue from Peninsular Malaysia.

The trading division saw a decrease in revenue by 10.46% to RM703.34 million from RM785.53 million, due to lower revenue from its fertiliser trading business and mitigated by higher revenue from its general trading business.

“Based on the foregoing and despite the challenging business environment and uncertainties in the global economies, the board is cautiously optimistic of achieving satisfactory results for the financial year ending Dec 31, 2023,” said the group on its prospects.

Its counter closed lower one sen or 0.24% to RM4.23 on Thursday (May 25), valuing the group at RM10.53 billion.