KUALA LUMPUR: Hap Seng Consolidated Bhd's (HSCB) net profit for the third quarter ended Sept 30, 2024 (3Q 2024) soared nearly fourfold to RM193.11 million, up from RM50.30 million in the same period last year.
However, the revenue decreased four per cent to RM1.48 billion from RM1.54 billion last year, due to lower contributions from the credit financing, automotive, and trading divisions.
For the cumulative nine months, net profit fell to RM500.52 million from RM762.96 million, while revenue declined to RM4.23 billion from RM4.78 billion year-on-year.
In a Bursa Malaysia filing today, the company noted that its 3Q 2024 operating profit more than doubled to RM352.7 million, compared to RM172.6 million in the same quarter last year, driven by stronger contributions from plantation, property, and credit financing divisions.
Looking ahead, the group expects its investment properties segment to continue performing well, supported by a stable tenant portfolio and efforts to optimise occupancy rates and rental yields.
"The credit financing division will maintain a prudent lending strategy while regularly reviewing its policies to manage operational risks and remain vigilant to changes in the economic and financing landscapes," it said.
In the automotive division, HSCB anticipates continued competition in the premium passenger car and commercial vehicle markets.
The company also noted that its fertilisers trading business expects global fertiliser prices to remain stable, while its building materials division, operating in Singapore through Hafary is projected to perform consistently, in line with the renovation activities in the property resale and sub-sale market.
Based on these factors, the board of directors remains cautiously optimistic about achieving satisfactory results for the financial year ending Dec 31, 2024.
Additionally, the board has approved a second interim dividend of 10 sen per ordinary share under the single-tier system, payable on Dec 19, 2024.