KUALA LUMPUR (Jan 11): Hume Cement Industries Bhd (HCIB), a member of the Hong Leong Group, has accepted an offer to sell its plot of land in the Prai Industrial Estate in Penang for RM39.80 million cash, that will bring it an estimated net gain of RM32 million.

The offer for the leasehold industrial land, together with the buildings built on it, was made by Skygate Technology (KL) Sdn Bhd, according to Hume Cement’s bourse filing on Thursday.

While the size of the plot, held under its wholly owned Hume Concrete Sdn Bhd, was not disclosed in the filing, a check with its annual report based on the address given showed that the plot measures about 653,400 sq ft and was acquired in 1982, with a net book value of RM1.32 million as of June 30, 2023. No reason for the disposal was given.

“Assuming the proposed disposal is completed, HCIB Group expects to realise an estimated net gain on disposal of approximately RM32 million.

“For illustrative purposes only, based on the HCIB shares in issue as at Dec 29, 2023, the consolidated earnings per share and consolidated net assets per share of HCIB is expected to increase by approximately five sen and six sen respectively,” it said.

On the financial front, the group recently posted a net profit of RM48.33 million for its first quarter ended Sept 30, 2023 (1QFY2024) — its highest quarterly earnings since 3QFY2003 — thanks to a revision in cement selling price to cushion the increase in energy costs, coupled with higher sales volume amid the recovery of construction activities.

Revenue grew 48.3% to RM306.66 million, from RM206.79 million in 1QFY2023, when it made a net loss of RM12.04 million.

The group also just paid an interim dividend of two sen per share on Dec 20 last year. This is its first dividend payout since FY2017.

Shares in Hume Cement dipped two sen or 0.75% to close at RM2.65 on Thursday, giving it a market capitalisation of RM2.65. The stock has jumped RM1.71 or 181.9% over the last 12 months.