Hiap Teck’s 3Q net profit rises 48.8% on year

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KUALA LUMPUR (June 30): Hiap Teck Venture Bhd said its net profit for the third quarter to end-April 2014 rose to RM13.57 million, up 48.8% from RM9.12 million a year ago.

It recorded a 6.2% growth in revenue in the third quarter to end-April 2014 (Q3FY2014) to RM296.7 million, from RM279.3 million achieved in Q3FY2013.

“The growth was driven primarily by the manufacturing division which registered a 10.2% increase in revenue to RM148.1 million (Q3FY2013: RM134.3 million) for the corresponding periods,” the company said in its filing with Bursa Malaysia.

It said although the group’s gross profit margin declined to 8.1% in Q3FY2014 from 10.7% previously due to weaker prices of steel products, higher “other income” together with a foreign exchange gain helped the company to post a higher profit.

For the nine months to April 2014, group revenue remained stable at RM826.3 million as compared to RM833.4 million in the previous corresponding period.

Due to higher gross margin, higher foreign exchange gain and interest income, the group registered a substantial growth in earnings with net profit rising to RM31.91 million, from RM11.92 million.

Hiap Teck said its board of directors “is cautiously optimistic on the performance of the Group for the remaining of the financial year”.