KUALA LUMPUR (Aug 9): Hup Seng Industries Bhd’s net profit surged 187.13% to RM8.72 million for the second quarter ended June 30, 2023 (2QFY2023), from RM3.04 million a year ago.

Earnings per share rose to 1.09 sen from 0.38 sen, according to Hup Seng’s Bursa Malaysia filing on Wednesday (Aug 9).

Revenue for the quarter increased 10.49% to RM81.55 million as compared to RM73.81 million in 2QFY2022. During the current quarter, its domestic sales grew 11% to RM6.3 million from all its channels.

The group’s export markets also increased about 9% to RM1.4 million mainly from Singapore and Indonesia.

For its cumulative six months, the group’s net profit almost doubled to RM18.39 million from RM9.81 million in 1HFY2022, mainly due to the improvement in the group’s contribution as a result of cost reduction of certain major input materials.

Cumulative revenue grew 9.71% to RM167.93 million from RM153.07 million a year ago on the back of the increase in its selling prices.

On prospects, the group expects its biscuits market to grow, given its popularity as an alternative staple food.

“The group envisages that the industry is poised to continue to grow and evolve to meet the changing demand of consumers and will strive to continue to maintain and improve product quality,” it said.

Moreover, the group will focus on maintaining the market share and product competitiveness in order to increase the popularity of its biscuits in the industry.

“Taking into account the aforesaid and barring any unforeseen circumstances, the group is cautiously optimistic that the business operations for the remaining quarters of the financial year will be satisfactory,” it added.

Hup Seng’s shares settled up half a sen or 0.77% at 65.5 sen on Wednesday for a market capitalisation of RM524 million.