KUALA LUMPUR (May 26): Hong Leong Industries Bhd (KL:HLIND), which distributes Yamaha brand motorcycles in Malaysia and Vietnam, logged flattish net profit of RM98.88 million in the third quarter ended March 31, 2025 (3QFY2025), despite a RM28 million provision for sales tax imposed by the Royal Malaysian Customs Department (RMCD).

Excluding the provision, the group’s quarterly net profit would have been over RM120 million.

In the previous year’s corresponding quarter, HLIND posted a net profit of RM99.43 million, including an insurance compensation of RM25 million for flood-related disruption.

In its bourse filing, HLIND said it incurred a RM28 million provision for sales tax following an unsuccessful defence in the Federal Court against an appeal filed by the RMCD.

Earnings per share was slightly lower at 31.08 sen against 31.60 sen in 3QFY2024, according to the filing.

Higher demand for motorcycles lifted its quarterly revenue by nearly 18% year-on-year to RM893.24 million from RM758.03 million.

HLIND declared a second interim dividend of 55 sen per share, higher than the 37 sen dividend it paid last year. This will be paid to shareholders on June 25. The group has, so far, declared a total dividend of 80 sen for the financial year ending June 30, 2025 (FY2025).

For the nine-month period ended March 31 (9MFY2025), HLIND’s net profit grew 27.4% to RM368.86 million from RM289.57 million a year ago, while revenue expanded 16.7% to RM2.73 billion from RM2.34 billion previously. The growth was primarily driven by stronger sales due to higher demand for motorcycles.

The group achieved an annual net profit of RM387.9 million in FY2024 and paid out a dividend per share of RM1.07.

On its prospects, HLIND said it expects to achieve satisfactory results for FY2025.

"Motorcycle demand is expected to remain strong in the upcoming quarter of this financial year. The group will continue to optimise sales and production strategies, focusing on improving product mix and cost efficiency to sustain performance,” it said.

HLIND’s share price dropped 12 sen to close at RM13.48 on Monday, giving it a market value of RM4.42 billion. Year to date, the stock is down 4.7% after a 70% climb in 2024.