KUALA LUMPUR (Aug 22): Hock Seng Lee Bhd’s second quarter net profit dipped 21% to RM9.53 million, from RM12.08 million a year earlier, due to lower construction income.

Sarawak-based Hock Seng Lee told Bursa Malaysia in a filing today that the group's revenue fell to RM106.39 million in the second quarter ended June 30, 2017 (2QFY17), from 
RM107.05 million a year ago. 

The (construction) revenue for the current quarter has decreased by 7% as compared to the previous year’s corresponding quarter, while profit before tax has decreased by 46%, the filing said.

The lower revenue was due to timing of progress claims for construction works, as major contract works are at their initial stages of execution. The profit margin for the works executed during the quarter was also lower," Hock Seng Lee, which also develops properties, said.

The group's 6MFY17 net profit slid to RM20.8 million, from RM28.34 million a year earlier. Revenue decreased to RM211.57 million, from RM249.31 million.

For 2QFY17, the company declared a tax-free dividend of one sen a share. The ex and payment dates fall on Sept 15 and Oct 10 this year respectively, according to the group.

Looking ahead, Hock Seng Lee said "the group will continue to bid for projects that are related to our core business in infrastructure works." The company said it had an existing order book of RM3 billion. 

At 12:30pm today, Hock Seng Lee shares settled at RM1.47, for a market capitalisation of RM807.79 million. The stock saw 303,900 shares traded.