KUALA LUMPUR (May 24): Hextar Global Bhd’s (KL:HEXTAR) net profit for the three months ended March 31, 2024 (1QFY2024) jumped 40.75% year-on-year, due to higher contribution from its newly diversified durian trading business as well as its specialty chemicals segment on contracts awarded from the oil and gas sector.

Net profit for the quarter came in at RM12.14 million, compared to RM8.63 million the previous year, as revenue surged 67.47% to RM232.27 million from RM138.74 million, its bourse filing showed on Friday.

Commenting on its business prospects, Hextar Global stated that demand for durian, particularly the "Musang King" variety, is expected to increase due to growing consumer awareness. Additionally, the government’s support for international marketing and promotion of the fruit is seen as beneficial for the industry.

In its specialty chemicals and catalysts segment for the oil and gas industry, the outlook for 2024 is generally positive, the company said. However, the market for special derivative and coating chemicals used in the rubber glove sector is expected to moderate.

Hextar Global anticipates the current oversupply situation to gradually improve as production capacity is reduced through the decommissioning of selective plants.

In addition, the group sees growth for its agriculture segment in the coming quarters as herbicide product prices stabilise.

“Our ongoing strategy involves concentrating on sales and marketing efforts to expand our markets, explore new opportunities, increase revenue and uphold our position as a leader in the local market. The board is confident that this segment will consistently contribute to the group’s sustainable income," it said.

No dividend was announced in the latest filing. 

Shares of Hextar Global were down one sen or 1.09% at 90.5 sen at Friday’s noon break, giving it a market value of RM3.55 billion.