Hong Leong Industries posts loss for 4Q on lower sales due to MCO

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KUALA LUMPUR (Aug 26): Hong Leong Industries Bhd swung to a loss in the fourth quarter ended June 30, 2020 (4QFY20) due to lower sales across all product segments, which were impacted by the Movement Control Order (MCO).

The group reported a net loss of RM29.57 million or 9.41 sen loss per share for the quarter, against a net profit of RM79.9 million or earnings per share of 25.45 sen for 4QFY19.

The last time it slipped into the red was three years ago, with a net loss of RM104.57 million in 4QFY17.

The group, in its filing with Bursa Malaysia, said the loss was also due to a lower profit contribution from an associated company, which reported a loss contribution of RM1.71 million versus a profit contribution of RM9.89 million previously.

Revenue for the quarter halved to RM311.11 million from RM632.08 million in 4QFY19.

Following the dismal quarterly results, the group's net profit for the full FY20 fell 48.25% to RM169.32 million, from RM327.09 million in FY19. Revenue decreased 8.47% to RM2.31 billion from RM2.53 billion.

The stock closed three sen or 0.4% higher today at RM7.62 — with 59,500 shares changing hands — giving the group a market capitalisation of RM2.43 billion.

Year-to-date, the stock has fallen by 30%.

Edited by S Kanagaraju