KUALA LUMPUR (Feb 27): Hap Seng Consolidated Bhd (KL:HAPSENG) posted a fourfold year-on-year surge in net profit for the fourth quarter, on higher contributions from its plantation and property segments.

Net profit for the three months ended Dec 31, 2024 (4QFY2024) leapt to RM149.97 million, versus RM37.36 million in the same period a year earlier, according to the diversified group in a bourse filing on Thursday. This was helped by net other operating income of RM59.31 million booked during the quarter under review, versus RM2.23 million in 4QFY2023.  

Quarterly revenue rose 6.9% to RM1.4 billion, versus RM1.31 billion in 4QFY2023, on higher contributions from the group’s plantation, property and building materials divisions.

The group saw higher average selling prices (ASPs) of palm products and higher sales volume of crude palm oil (CPO) under the plantation division. The ASP of CPO per metric ton rose to RM4,791 from RM3,798 previously, while the ASP of palm kernel increased to RM3,538 from RM2,128.  

The property division benefited mainly from land sales. The building materials division, meanwhile, saw higher revenue contributions from 50.82%-owned Hafary Holdings Ltd’s Malaysian operations.

No dividend was declared for the latest quarter. Total dividend payout for FY2024 stood at 20 sen per share, lower than the 25 sen per share in FY2023.

For the full FY2024, Hap Seng’s net profit declined 18.7% to RM650.48 million from RM800.33 million a year ago, as revenue slipped 7.5% to RM5.63 billion versus RM6.09 billion previously.

Commenting on its FY2025 outlook, Hap Seng said the current palm oil premium is unlikely to be sustained in the longer term, as major palm oil importing countries shift to other cheaper vegetable oils.

Nonetheless, the group noted that Indonesia’s B40 biodiesel mandate and increased CPO export levy to 10% from 7.5% augur well for the global palm oil market, as it could constrain supply.

While anticipating Malaysia’s property market’s resilience to continue in 2025, Hap Seng warned of cautious consumer sentiment amid global uncertainties, rising costs, and consumers’ affordability concerns.  

On its building materials division, Hap Seng said operations in Singapore via Hafray are expected to be supported by property development and resale activities. Meanwhile, the Malaysian operation will be underpinned by demand from overseas markets.

Shares in Hap Seng ended unchanged at RM3.23 on Thursday, valuing the group at RM8.04 billion.

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Higher selling prices, CPO sales push Hap Seng Plantations’ 4Q net profit up four times