KUALA LUMPUR (Aug 7): Hup Seng Industries Bhd (KL:HUPSENG) announced its net profit grew 3.53% to RM9.03 million, or 1.13 sen per share, for the second quarter ended June 30 (2QFY2024).

Revenue fell marginally by 1.61% to RM80.24 million during the quarter under review from RM81.55 million during the same period last year.

The company declared its first interim single-tier dividend of two sen per share.

Hup Seng said it faced headwinds in the export market, with sales falling 4% or RM800,000 primarily due to weaker sales in Thailand and Saudi Arabia. Meanwhile, the domestic sales dipped 1% impacted by lower demand in East Malaysia.

Looking ahead, Hup Seng said it remains cautious given the highly competitive industry landscape, and will stay vigilant and adaptive to market shifts. It flagged the challenges including rising costs of raw materials, particularly cocoa powder and milk powder.

“Nevertheless, the group will focus on streamlining operations and enhancing brand awareness, as well as to continue to maintain and improve product quality,” Hup Seng said. It also aims to strengthen both domestic and export markets, ensuring a steady supply of products to meet consumer needs.

For the first half of financial year 2024 (1HFY2024), Hup Seng’s net profit went up by 25% to RM23 million, compared with RM18.39 million in 1HFY2023. It attributed this to the improvement in contribution from lower costs of certain major materials.

Revenue for the 1HFY2024 grew by 3.49% to RM173.8 million, from RM157.93 million over the same period last year, on the back of higher sales volumes in both domestic and export markets.

Hup Seng’s share price gained three sen on Wednesday at RM1.06, resulting in a market capitalisation of RM848 million.