KUALA LUMPUR (May 6): Hong Leong Industries Bhd (KL:HLIND) posted a 39.9% jump in net profit for its third quarter, driven by an improved motorcycle sales mix and lower raw material costs amid favourable foreign exchange movements.

Net profit for the third quarter ended March 31, 2026 (3QFY2026) rose to RM138.37 million from RM98.88 million a year earlier, according to its Bursa Malaysia filing on Wednesday.

The previous year’s corresponding quarter was weighed down by a RM28 million sales tax provision imposed by the Royal Malaysian Customs Department (RMCD) on motorcycle parts, following the group’s unsuccessful appeal at the Federal Court.

Revenue for 3QFY2026 edged down 1.5% to RM879.62 million from RM893.24 million, mainly due to slightly lower sales volume.

The group, which manufactures and sells motorcycles, spare parts and ceramic tiles, declared a third interim dividend of 20 sen per share, payable on June 10. This brings total year-to-date dividends to RM1.00 per share, surpassing the 80 sen paid for the full FY2025 (ended June 30).

For the first nine months of FY2026, net profit climbed 16.7% to RM430.53 million from RM368.86 million, while revenue rose 1.6% to RM2.77 billion from RM2.73 billion.

Looking ahead, Hong Leong Industries said geopolitical tensions arising from the ongoing West Asia conflict could pose risks of supply chain disruptions and cost volatility. Nonetheless, it said domestic demand for motorcycles is expected to remain resilient, supported by their affordability and practicality as a mode of transport.

The group said it will maintain a cautious stance, focusing on supply chain management, inventory optimisation and cost discipline, while continuing to enhance its product mix and operational efficiency.

Shares of Hong Leong Industries have gained more than 31% over the past 12 months, hitting a record high of RM19.10 on Feb 20. The stock closed up eight sen or 0.45% to RM18 on Wednesday, valuing the group at RM5.9 billion.