KUALA LUMPUR (Nov 21): Hap Seng Consolidated Bhd (KL:HAPSENG) posted a more than three-fold jump in net profit for its third quarter from a year ago, on improved contributions from the diversified group’s plantation, property and credit financing divisions.

Net profit for the quarter ended Sept 30, 2024 (3QFY2024) leapt to RM193.11 million from RM50.3 million in 3QFY2023, though revenue slipped 3.94% to RM1.48 billion from RM1.54 billion previously due to lower contribution from credit financing and automotive and trading divisions, which were mitigated by higher revenue from its plantation and property and building materials divisions, according to the group's bourse filing on Thursday.  

In spite of the lower turnover, the plantation division’s higher crude palm oil (CPO) and palm kernel prices, property division’s improved occupancy and average room rates, and credit financing division’s lower loan impairment and lower non-performing loans (NPL) led to the improved bottom line.

The group declared a second interim dividend of 10 sen per share, payable on Dec 19.

But for the nine months ended Sept 30 (9MFY2024), net profit fell 34.4% to RM500.52 million from RM762.96 million in the same period last year, mainly because the previous year had included RM600.3 million gains from the disposal of subsidiaries. Cumulative revenue dropped 11.42% to RM4.23 billion from RM4.78 billion.

Going forward, Hap Seng expects high CPO prices to remain a boon for its plantation business, increased tourist arrivals and spending to benefit the group’s hospitality segment under the property division, and for continued prudent lending to support minimising NPLs under its credit financing business.

“Based on the foregoing, the board is cautiously optimistic of achieving satisfactory results for the financial year ending Dec 31, 2024 (FY2024),” it added.

Shares in Hap Seng ended unchanged at RM3.88 on Thursday, giving the group a market capitalisation of RM9.66 billion.