KUALA LUMPUR (May 26): Diversified conglomerate Oriental Holdings Bhd saw its net profit for the first quarter ended March 31, 2016 (1QFY16) rise 21.6% to RM67.97 million or 10.96 sen a share from RM55.89 million or 9.01 sen a share a year ago.

In its filing to Bursa Malaysia today, the group attributed the higher profit to its automotive segment, in particular its retail operations in Singapore which saw a 191.3% increase in cars sold, mainly from the Jazz and Odyssey model following the higher Certificate of Entitlement (COE) quota released by the authorities.

The Penang-based group, founded by local "Honda King" Tan Sri Loh Boon Siew, distributes Honda vehicles in both Malaysia and Singapore.

In Malaysia, Oriental Holdings' retails sales of Honda units fell 22.5% in 1QFY16 mainly because no new models were launched.

Revenue totalled RM1.21 billion, 35.6 % more than the 1QFY15 revenue of RM896.03 million.

Oriental Holdings said that aside from the automotive division, the group's plantation, hospitality and healthcare segments had each also recorded an increase in revenue.

On its prospects, the group said the automotive segment will continue to expand and upgrade its showrooms and service centres including boosting its presence in Sabah and Sarawak.

The plantation segment, meanwhile, will continue to consolidate the present land bank and to diversify into real estate investment via several strategic acquisitions in Australia to counteract the volatility of palm oil industry and the exposure from the changes in regulatory requirements on land holdings.

The group said its hospitality segment's plan is to optimise the utilisation of the existing assets and improve the operational execution through various organic measures.

As for the investment properties segment, the group said it will continue to reclaim its remaining 415 acres in Melaka and seek ways to value-add its land bank for future developments.

Oriental Holdings shares rose one sen or 0.15% today to close at RM6.89 for a market capitalisation of RM4.27 billion.