Hong Leong Asia’s net profit rose 110.4% YoY to S$40.7m in H1 2021
This as its key business recorded higher volume sales and revenue.
Hong Leong Asia Ltd. (HLA) Group attributable net profit rose 110.4% year-on-year (YoY) to S$40.7m in the first half of 2021 as its key business recorded higher volume sales and revenue, it said in a filing.
This is following the S$19.4m net profit posted in the same period last year.
HLA’s revenue jumped 32.8% to S$2.8b, with its Diesel Engines Unit Yuchai’s revenue increasing 31.9% to S$2.6b due to strong sales of 285,342 engine units.
Its building material unit’s (BMU) revenue also rose 46.4% YoY to S$222.9 with a pre-tax profit of S$13.9m following the recovery of the construction sector from a low base last year.
The group also said that the BMU in Malaysia (Tasek) managed a double-digit volume sales growth but still reported a loss for the first half, noting that the operating environment in Malaysia is challenging due to the imposition of tighter restrictions because of rising COVID-19 infections.
“The group, with its conservative balance sheet and net cash position, remains steadfast as it actively manages risks arising from the impact of the COVID-19 pandemic,” HLA said.
HLA noted that the first half “saw a tight market condition with labour shortages and rising costs pressures amid measures put in place to control the pandemic," whilst input costs in raw material prices, packaging material, and transportation costs increased.
It said it imposed measures to improve operational efficiencies to absorb cost pressures. HLA also implemented measures to minimise the impact of disruption in the supply of precast concrete components if the stricter measures in Malaysia implemented in June remain extended.
“These, together with the group’s effort in seeking opportunities to strengthen its market position will lead the group to emerge stronger from the pandemic,” HLA said.
It also said it completed the assignment of debt outstanding from Xinfei Companies and saw a pre-tax gain of about S$10m in the first half.