KUALA LUMPUR (Nov 24): Hong Leong Industries Bhd swung back to the black in its first financial quarter ended Sept 30, 2020 (1QFY21) with a net profit of RM50.72 million after posting a loss in the immediate preceding quarter.

Earnings per share stood at 16.14 sen, compared with losses per share of 9.41 sen.

Quarterly revenue more than doubled to RM652.66 million compared with RM311.11 million in 4QFY20.

In a filing with Bursa Malaysia today, the board also declared an interim single-tier dividend of 17 sen per share for 1QFY21, to be paid on Dec 23.

On a year-on-year basis, however, Hong Leong Industries' 1QFY21 net profit came in 19.9% lower than the RM63.35 million or earnings per share of 20.18 sen it recorded in the corresponding quarter last year.

Revenue was also down by 9.3% against RM719.37 million in 1QFY20.

Hong Leong Industries said the quarterly revenue and net profit were lower this year as businesses and operations of most of the product segments had not fully recovered from the adverse impact of the Covid-19 pandemic.

"Whilst the economy has gradually recovered from the previous quarter, the pace of recovery remains uncertain.

"Barring any unforeseen circumstances of the Covid-19 situation, the board is cautiously optimistic that the group's performance for the financial year ending June 30, 2021 will be satisfactory," it said of its prospects.

Shares in Hong Leong Industries were down 1.67% or 14 sen to close at RM8.24 per share today with a market capitalisation of RM2.7 billion.