Friday 29 Mar 2024
By
main news image

KUALA LUMPUR (Aug 23): Oriental Holdings Bhd posted a net profit of RM114.36 million in its second quarter ended June 30, 2017 (2QFY17), compared with a net loss of RM12.59 million a year earlier, as revenue jumped nearly 50%.

It was the group's fourth consecutive profitable quarter after it fell into the red in the same quarter last year.

Revenue came in at RM1.62 billion, compared with RM1.08 billion a year ago, the group's Bursa Malaysia filing today showed.

As for its first six months of FY17 (1HFY17), Oriental's net profit jumped over three times year-on-year to RM179.41 million from RM55.38 million, thanks to contributions from its plantation, automotive and investment holding segments.

Revenue in 1HFY17 came in at RM3.31 billion, up 44% from RM2.3 billion a year ago, mainly contributed by the automotive segment, as it sold more cars, especially in Singapore.

Operating profit for the automotive segment rose 63% to RM134.1 million, as revenue climbed 58% to RM2.49 billion.
 
“For the retail operations in Singapore, revenue grew significantly by 79.8% in line with the hike in number of cars sold by 79%, mainly from the strong product launch since 3Q last year for [the] Civic model, and continuing strong demand for other models [such as] HRV and Jazz,” Oriental said.
 
“For the retail operations in Malaysia, sales units increased by 33.6% mainly due to strong demand from the newly launched model, BRV, and facelift model of [the] Honda City introduced to the market in January and March this year, respectively. In addition, Honda HRV continues to be in demand since it was launched in early 2015,” it added.

Also notable is the turnaround in its plantation segment, with an operating profit of RM24.8 million versus an operating loss of RM82.6 million in 2016, with a 67% rise in revenue, boosted by a 33% rise in volume of crude palm oil (CPO) and palm kernel (up 49%).
 
Higher selling prices compared with 2016 (CPO grew 26%; PK grew 43%), along with unrealised foreign exchange loss shrinking to RM43.7 million from RM94.5 million, further contributed to the improved performance of the segment.

As for its investment holding, revenue declined 44% due to lower dividend income. But operating profit jumped 598% (RM40.2 million in 2017 versus operating loss of RM8.1 million in 2016) due to lower unrealised forex loss on Japanese yen denominated borrowings, and a disposal gain of RM22.3 million.
 
The group is optimistic its FY17 performance will be satisfactory. Oriental shares closed 0.8% or 5 sen lower at RM6.60, valuing it at RM4.09 billion.

      Print
      Text Size
      Share