KUALA LUMPUR (Nov 21): Hap Seng Consolidated Bhd made a net profit of RM50.3 million in the third quarter ended Sept 30, 2023 (3QFY2023), down 91.1% from RM563.75 million a year ago, as it recorded a smaller disposal gain during the quarter, and lower profit contribution from its property, credit financing, automotive and trading divisions — mitigated by higher profit contribution from plantation and building materials divisions.

The preceding year's corresponding quarter had included a gain of RM425.1 million from the disposal of its credit financing operations in Birmingham, UK, via its wholly-owned HS Credit (Birmingham) Ltd, while 3QFY2023 recorded a gain of RM5.3 million from the disposal of its wholly-owned Richmore Development Sdn Bhd.

Consequently, Hap Seng's profit before tax (PBT) was down 79% at RM138.5 million, while profit after tax (PAT) dropped 86% to RM83.3 million from the preceding year. Excluding these gains from the disposal of subsidiaries, PBT would have contracted less, by 40%, while PAT would be down 53%, the group said.

Operating profit fell 31.4% to RM172.6 million from RM251.5 million in 3QFY2022. Revenue dropped 22.1% to RM1.54 billion from RM1.97 billion, attributed to lower revenue from all divisions except credit financing and building materials divisions.

Hap Seng's net profit for the nine months ended Sept 30, 2023 (9MFY2023), meanwhile, slid 10.5% to RM762.96 million from RM852.63 million in the same period a year ago, as revenue fell 10.2% to RM4.78 billion from RM5.32 billion.

The group declared a second interim dividend of 15 sen per share, to be paid on Dec 21 this year, raising its year-to-date payout for FY2023 to 25 sen, compared with 30 sen for the YTD period in FY2022.

The group, which sells Mercedes-Benz vehicles under its automotive business, is cautiously optimistic of achieving "satisfactory results" for its FY2023.

Its shares closed up 20 sen or 4.17% at RM5, giving the group a market capitalisation of RM12.45 billion. Year to date, the counter has fallen 21.9%.