KUALA LUMPUR: HIL Industries Bhd sustained its strong performance in the second quarter ended June 30, 2021 (Q2) of 2021 with a net profit more than double to RM4.6 million from RM1.9 million posted in the same period previously.
In a statement today, the one-stop plastic solution provider and property developer said this was driven by higher sales contributions from its manufacturing division.
The company recorded the sustained results despite implementing the nationwide lockdown between May and June this year.
Its Q2 revenue increased 16.8 per cent to RM25.6 million from RM21.9 million posted a year ago.
HIL Industries' manufacturing division is involved in plastic injection moulding, producing plastic original equipment manufacturer (OEM) parts mainly for automotive and IT-related products.
Its customers include Perusahaan Otomobil Kedua Sdn Bhd (Perodua), Proton Holdings Bhd, Toyota Motor Corp, and Honda Motor Co Ltd.
The company's manufacturing division rose 35 per cent in Q2 with total revenue of RM17.4 million from RM12.9 million a year ago.
This was attributed to the launch of several new car models and increased sales enjoyed by its customers on the extension of the sales tax waiver under the Penjana plan.
However, revenue contribution from the property development and management division contracted 9.9 per cent to RM8.2 million from RM9.1 million a year ago due to the slowdown in sales resulting from the full lockdown.
For the half-year (1H) period ended June 30, 2021, HIL Industries' net profit jumped 76.0 per cent to RM11.4 million from RM6.5 million, while revenue grew 11.8 per cent to RM60.3 million from RM53.9 million a year ago.
This was supported by strong demand for automotive parts and components during the period under review.
As of June 30, 2021, HIL Industries' financial position remained robust, sporting cash and cash equivalents of RM135.8 million and a current ratio of 5.3 times.
The company had no bank borrowings.
President and chief executive officer Datuk Milton Ng said the company would continue implementing various cost containment exercises focusing on productivity improvements.
"We want to strive to be proactive in aligning its market strategies to capture the opportunities in both manufacturing and property development and management division.
"Overall, the Malaysian economy is expected to continue with its gradual but uneven recovery path supported by the improved global demand and gradual normalisation in domestic economic activities," he said.
He said the growth prospects would be partly driven by the domestic and global economic recovery, the launch of the National Covid-19 Immunisation Programme, and the provision of the economic stimulus packages.
"We are optimistic that we can recover strongly from this pandemic with the current high vaccination rate as well as the opening up of most business segments as more states move out from the Phase One of the Movement Control Order (MCO).
"Our staff are almost 100 per cent fully vaccinated. Based on the pent up demand from our customers, we anticipate rebounding strongly after the end of the MCO. We will work tirelessly to recover the lost revenue during the periods of shutting down as a result of the MCO," he added.
