KUALA LUMPUR (Nov 18): Sarawak-based infrastructure company Hock Seng Lee Bhd turned in a net profit of RM14.56 million in the third quarter ended Sept 30, 2019 (3QFY19), a marginal improvement from RM14.31 million in the corresponding quarter a year ago, contributed by improved profit margin at its construction segment.

Quarterly revenue came in marginally higher at RM173.84 million compared with RM173.29 million in 3QFY18, due mainly to the timing of recognition of sales at its property development segment, its extra filing today showed.

This brings Hock Seng Lee’s nine-month (9MFY19) net profit to RM45.08 million, up 6.8% from RM42.21 million in the same period in the preceding year. Cumulative revenue rose 8% to RM495.97 million, from RM459.29 million previously.

Hock Seng Lee said it is busy on work execution, as it has a record order book worth RM3.4 billion, with some RM2.5 billion unbilled.

The company’s managing director Datuk Paul Yu Chee Hoe said the group is positive that it will be able to participate and benefit from developments across the state of Sarawak and the construction industry.

“The Coastal Road, the Second Trunk Road and contracts associated with the water grid are all on Hock Seng Lee’s radar, as they draw on the group’s strength in geotechnical and marine engineering.

“Our marine engineering expertise and large fleet of specialized equipment put us in strategic positions to undertake further infrastructure projects in Sarawak. That said, we will remain prudent and selective in our project management strategies,” Yu said in a separate statement.

Yu said with the new projects and mega projects progressing well, we are confident of further positive contributions to the earnings and net assets of the group.

Shares of Hock Seng Lee closed unchanged at RM1.31 today, for a market capitalisation of RM719.87 million.