KUALA LUMPUR (Nov 23): Hap Seng Consolidated Bhd's net profit for the third quarter ended Sept 30, 2017 (3QFY17) grew 5% to RM175.6 million from RM166.58 million in the corresponding period last year, as it saw higher contributions from its property, credit financing and fertiliser trading divisions.

However, it said in its quarterly results filing to Bursa Malaysia that the positive impact of that was partly offset by lower profit contribution from its plantation, automotive and building materials divisions.

Revenue in 3QFY17 slid a marginal 1% year-on-year to RM1.39 billion from RM1.41 billion.

The group declared second interim dividend of 20 sen in respect of FY17, payable on Dec 20. The entitlement date is on Dec 8. This brings its year-to-date (YTD) dividend declared to 35 sen a share, comparable to last year's YTD payout.

For the cumulative nine months ended Sept 30, 2017 (9MFY17), net profit rose 5% y-o-y to RM959.7 million from RM913.39 million, while revenue likewise climbed 5% to RM3.88 billion from RM3.68 billion.

Hap Seng said Malaysia's palm oil inventories was at 2.2 million tonnes as at end of October — the highest since January 2016 — partly due to palm oil crop production recovery after being affected by the El Nino weather phenomenon.

It expects global production of palm oil to exceed consumption and exert a downward pressure on palm oil prices in the near term.

Going forward, Hap Seng is optimistic of achieving better results for FY17.

Its shares closed unchanged at RM9.39 for a market capitalisation of RM23.37 billion.