KUALA LUMPUR (Feb 15): Hume Cement Industries Bhd (HCIB) announced that its wholly owned subsidiary Hume Concrete Sdn Bhd has entered into a conditional sale and purchase agreement to sell a plot of land in the Prai Industrial Estate in Penang to Skygate Technology (KL) Sdn Bhd for RM39.8 million cash.
According to the group in a bourse filing on Thursday, the property is not needed for operations, and the proposed disposal will enable it to realise its investment in the property.
The disposal of the leasehold land will come together with the buildings, thereon including all the fixtures, fitting, and other things measuring approximately 60,702.75 sq m.
HCIB added that the purchase price was arrived at on a willing buyer, willing seller basis after arm’s length negotiations, taking into consideration the valuation of the land at RM28 million.
The proposed disposal is expected to be completed in the second half of the year, resulting in a net gain on disposal of about RM32 million.
“Based on the HCIB shares in issue as of Dec 29, 2023, the estimated net gain attributable to owners of the company represents an increase in the consolidated earnings per share in the company of approximately five sen and consolidated net assets per share of six sen,” the group said.
As at the first quarter ended Sept 30, 2023 (1QFY2024), the group bagged a net profit of RM48.33 million — its highest quarterly earnings since 3QFY2003 — thanks to a revision of cement selling prices to cushion the increase in energy costs, coupled with higher sales volumes amid a recovery in construction activities.
Revenue grew 48.3% to RM306.66 million, from RM206.79 million for 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 — its first dividend payout since FY2017.
According to Bloomberg data, HCIB is 69.52% owned by Hong Leong Manufacturing Group Sdn Bhd.
At Thursday's noon market break, shares in HCIB had slipped two sen or 0.68% to RM2.91, valuing the group at RM1.82 billion.
The stock had jumped RM1.89 or 185.29% over the last 12 months.