KUALA LUMPUR (May 29): Hap Seng Consolidated Bhd (KL:HAPSENG) said on Wednesday that its net profit more than doubled in the first quarter compared to a year earlier, thanks to lower fertiliser costs boosting its plantation earnings, coupled with gains from land sales.

Net profit for the three months ended March 31, 2024 (1QFY2024) was RM137.28 million, compared to RM50.77 million over the same period last year, Hap Seng said in an exchange filing on Wednesday.

Revenue for 1QFY2024 fell 16% year-on-year to RM1.34 billion from RM1.59 billion, attributed to lower contributions from the credit financing, automotive, and trading divisions.

The company declared its first interim dividend of 10 sen per share, payable on June 27.

On a quarter-on-quarter basis, net profit more than tripled from RM37.36 million, driven primarily by gains from fair value adjustments of biological assets that boosted the plantation division's earnings, as well as gains from land sales.

Looking ahead, the group is cautiously optimistic about achieving satisfactory results for FY2024, as the two largest contributors to the group’s revenue, the trading division and the property division, are expected to have positive outlooks.

The trading division expects stable fertiliser prices and growth in the construction sector to boost demand, while the property division is anticipated to benefit from the recovery of the Malaysian property market in 2024, supported by government initiatives and stable interest rates.

Meanwhile, the plantation division will continue focusing on improving efficiency and yield, it said.

Shares in Hap Seng settled four sen or 0.9% lower at RM4.39 on Wednesday, valuing the group at RM10.93 billion.