KUALA LUMPUR (Nov 19): The Loh family’s diversified conglomerate Oriental Holdings Bhd, which distributes Honda vehicles in Malaysia and Singapore, saw its net profit for the third quarter ended Sept 30, 2015 (3QFY15) surge 394% year-on-year to RM339.34 million, on higher revenue and a foreign currency translation difference for foreign operations of RM286 million. 

This is compared to its net profit of RM73.1 million that was recorded in the same period last year, its filing to Bursa Malaysia today showed.

Revenue for the latest quarterly period, meanwhile, was 36.6% higher at RM1.2 billion compared with RM875.4 million in 3QFY14. 

As for its cumulative nine-month (9MFY15) period, net profit came in 216.9% higher at RM591.5 million compared with RM186.7 million in the same period last year.

The latest cumulative revenue, meanwhile, was up 25.8% to RM3.1 billion from RM2.5 billion in 9MFY14. However, its cumulative profit before tax came in at RM245.7 million, 24.9% lower than the corresponding period last year.

The group has seven business segments. Notably, its automotive segment saw a 52.8% revenue rise and a 131.6% operating profit improvement. Both its Malaysia and Singapore’s retail operations saw the number of cars sold up by 30.1% compared with the corresponding nine-month period last year. 

“The retail operation in Singapore was contributed by higher Certificate of Entitlement quota released by the authorities and strong products launched. The retail performance in Malaysia was contributed mainly by new models. i.e. HRV,” said Oriental Holdings.

On prospects, the group said the automotive segment will continue to contribute to its performance, albeit under very competitive market conditions.

“The automotive segment will continue to expand and [the group will be] upgrading its showrooms and service centres including boosting its presence in Sabah and Sarawak. The retail outlet in Johor Bahru is targeted to commence operation in July 2016, which will be the biggest 4S (sales, services, spare parts and spray painting) centre in Malaysia,” it noted.

Its plantation segment, meanwhile, will continue to consolidate its present land bank to diversify into real estate via its recent Melbourne properties acquisition to mitigate exposure from regulator changes and volatility of the palm oil industry.

As for its plastic segment, it expects competition to remain stiff among local industry players.

“The hospitality segment is expected to maintain its profitability with improved operational execution through various organic measures. The investment properties segments will continue to reclaim its remaining 415 acres in Melaka and to unlock the value of the land bank for future developments,” it noted.

As for its new healthcare segment, with the commencement of Oriental Medical Centre in Melaka in January this year, the group expects to gain strong corporate reputation as a reliable, affordable healthcare provider.

"The board is of the view that the group’s performance for the year 2015 will be a respectable one, given current economic condition," it concluded.