KUALA LUMPUR (May 20): HIL Industries Bhd’s net profit for the first quarter ended March 31, 2021 jumped 50.21% to RM6.21 million from RM4.13 million a year earlier, on the back of a better showing by its manufacturing, and property development and management divisions. Earnings per share increased to 1.87 sen from 1.24 sen.

Revenue increased 8.44% to RM34.68 million from RM31.98 million, the group said in a filing with Bursa Malaysia.

HIL managing director Datuk Milton Ng attributed the strong financial performance to strong demand for automotive parts and components from several automotive companies as the economic recovery picked up pace despite the travel curbs due to the Covid-19 pandemic.

“Our manufacturing division reported higher revenue and profits due to the launch of several new models during the financial period and also increased sales enjoyed by our customers due to the extension of the waiver of sales tax under the Penjana plan,” he added in a statement.

The manufacturing division is involved in plastic injection moulding which produces plastic original equipment manufacturer (OEM) parts, mainly for automotive and IT-related products. Its customers include Perusahaan Otomobil Kedua Sdn Bhd (Perodua), Proton Holdings Bhd, Toyota Motor Corp, Honda Motor Co Ltd and others.

Ng said the manufacturing division is expected to perform better this year.

“The company has secured several new models and additional new parts and components from several automotive companies and as such this will augur well for the division's future performance. The Penang branch operation is also starting to pick up its sales,” he said.

Ng said the company has several new projects for the automotive segment which will have a strong positive impact on its sales if there is no full-scale lockdown and the chip supply chain is back to normal.

As for the property development and management division, Ng said its better performance during the first quarter was mainly due to the higher profit recognition subsequent to the completion of Amverton Greens.

Looking ahead, he said revenue for the division will be mainly from the Amverton Links as well as its completed project, 108 terrace houses in Bukit Kemuning and Amverton Greens.

HIL Industries is slated to launch Amverton Links Phase 2 in the second quarter this year, followed by Amverton Links townhouse in the third quarter of 2021.

HIL Industries shares rose two sen or 2.13% to settle at 96 sen, giving the group a market capitalisation of RM321 million.