KUALA LUMPUR (Aug 16): Sarawak-based infrastructure company Hock Seng Lee Bhd (HSL) saw its net profit jump 44.3% to RM14.12 million in the second quarter ended June 30, 2018 (2QFY18) from RM9.78 million a year ago, on the back of accelerated execution of its mega-projects as they entered mid-phases of construction.

This resulted in a higher earnings per share of 2.57 sen for 2QFY18 compared with 1.78 sen for 2QFY17.

Quarterly revenue doubled to RM154.25 million from RM75.9 million in 2QFY17, after restatement of the preceding year’s figure in line with new accounting policies adopted.

The group also declared a first interim dividend of one sen per share for the financial year ending Dec 31, 2018, payable on Oct 10.

In a filing with Bursa Malaysia today, HSL said the construction segment contributed RM138.69 million (90%) while the property development segment registered a contribution of RM15.56 million (10%) to the group’s revenue during the quarter under review.

The strong quarterly performance lifted the group's net profit for the cumulative six months (1HFY18) up 33.2% to RM27.9 million from RM20.95 million a year ago, while revenue grew 67.4% to RM286 million from RM170.82 million in 1HFY17.

In a statement today, HSL managing director Datuk Paul Yu Chee Hoe said with a record order book of RM3.1 billion, of which some RM2.5 billion is unbilled, the projects in hand across Sarawak will keep the group well occupied for several years, although selective procurement is ongoing.

HSL’s Pan-Borneo Highway contract (Package 7) covering the Julau and Sibu interchanges, the 1.7km Btg Rajang (Durin) bridge and 17 other bridges – a total of some 76 km, is moving ahead with 30% now completed, he added.

"There has been an increase in the construction activities which has translated into higher revenue since the fourth quarter of 2017. Revenue growth has been registered in both its construction and property development sector in the second quarter of 2018 and such trend is expected to continue," HSL said in a separate filing with Bursa Malaysia.

HSL said its overall profit margin has also improved compared with 2017.

"The group remains competitive in our tendering and project procurement will continue to be undertaken in line with our prudent project management strategies, taking due consideration of the capacity and capabilities of the group vis-a-vis the rising needs for developments in the state.

"HSL foresees the property development segment, with a variety of products on offer, will make a greater impact on the business of the group in 2018 and beyond," it added.

The group's property segment currently has some RM287 million worth of projects in hand and so far, this year has launched RM50 million worth of property projects.

HSL shares were untraded in the morning session today. The stock's share price last closed at RM1.41 yesterday, bringing a market capitalisation of RM774.82 million.