KUALA LUMPUR (Feb 23): Hap Seng Consolidated Bhd’s net profit dropped 67.4% to RM98.02 million in the fourth quarter ended Dec 31, 2022 (4QFY2022), from RM300.53 million a year earlier, due to lower contribution from its plantation and property divisions.
Earnings per share fell to 3.94 sen from 12.07 sen, according to the group's Bursa Malaysia filing.
Revenue fell 2.62% to RM1.80 billion from RM1.84 million in 4QFY2021, as the revenue contribution from the plantation, property and credit financing divisions saw a decrease.
The plantation segment's revenue fell 26% to RM143.55 million from RM194.83 million in 4QFY2021, while the property division saw its contribution decline 75% to RM124.08 million from RM502.14 million. The credit financing division's revenue fell 10% to RM62.83 million from RM69.88 million.
Nevertheless, the group's automotive, trading and building materials segment reported improved revenue contributions for the quarter.
In contrast, the group's automotive segment saw its revenue contribution rise to RM500.3 million from RM364.55 million, trading segment’s revenue rose to RM839.33 million from 636.14 million, and building materials division brought in RM210.85 million against RM156.43 million in 4QFY2021.
For the full financial year, Hap Seng’s net profit improved 5.6% to RM950.66 million from RM900.43 million in FY2021 due to a lower tax expense which was attributable to capital gains not subjected to tax.
The group's tax expense fell to RM267.58 million from RM444.55 million in FY2021.
Full-year revenue increased 18.3% to RM7.11 billion from RM6.01 billion, on higher contribution from the plantation, automotive, trading and building materials segments.
“The board is cautiously optimistic of achieving satisfactory results for the financial year ending Dec 31, 2023,” said Hap Seng in its filing.
The group’s share price closed eight sen or 1.23% higher at RM6.60, giving the group a market capitalisation of RM16.43 billion.