PETALING JAYA: Hong Leong Industries Bhd
expects the demand for motorcycles to remain stable going forward and continue to drive its financial performance.
For the third quarter ended March 31, 2024 (3Q24), the group’s net profit rose by 51% year-on-year (y-o-y) to RM99.4mil, translating to an earnings per share (EPS) of 31.6 sen despite revenue dropping 18% y-o-y to RM758.03mil due to a fall in motorcycle sales in the period.
For the nine months of financial year 2024 (9M24), Hong Leong Industries’ net profit rose 31% y-o-y to RM289.6mil or an EPS of 92 sen as revenue contracted by 12% y-o-y to RM2.3bil.
In a filing with Bursa Malaysia, the group said the lower revenue for 3Q24 and 9M24 was mainly due to lower sales of motorcycles.
Hong Leong Industries said the higher net profit recorded for 3Q24 was mainly attributed to a RM25mil insurance compensation received for the disruption caused by floods in the motorcycle business during 3Q22.
Moreover, the higher net profit in 9M24 was due to the favourable sales mix of better margin motorcycle models, the insurance compensation received and the RM18.7mil gain from the disposal of the entire equity interest in Hume Cemboard Industries Sdn Bhd to Saint-Gobain Malaysia Sdn Bhd for RM76.5mil.
Hong Leong Industries added it will continue to focus on growing and optimising the products with better margins.
The company has declared a second interim dividend of 37 sen a share for the quarter, payable on June 25, its filing with the local bourse stated.
Since the beginning of the year, the counter has seen an 18% increase in its share price, closing at RM10.84 per share yesterday.
