Hong Leong Asia H1 net profit surges 64.1% to S$91.9 million

[SINGAPORE] Hong Leong Asia reported a 64.1 per cent increase in net profit to S$91.9 million for the first half ended Jun 30, from S$56 million for the previous corresponding period.

This was driven by higher sales volumes for precast and ready-mix concrete in its building materials unit, as well as strong engine unit sales from its main subsidiary Yuchai, the group said in a bourse filing on Wednesday (Aug 12).

Earnings per share came in at S$0.1204, up from S$0.0749 a year earlier.

Revenue rose 17.6 per cent year on year to S$3.1 billion, from S$2.7 billion.

Yuchai, which generates about 87 per cent of the group’s total revenue, booked a 16.8 per cent increase in revenue to S$2.7 billion, as engine unit sales grew 10.9 per cent to 277,684 units.

Meanwhile, revenue for the building materials unit rose 24.1 per cent to S$384.8 million, supported by robust construction activities in Singapore.

Newly acquired subsidiaries Yong Tai Loong and Nanyue Fuel Injection Systems also started contributing revenue post-acquisition, said Hong Leong Asia.

An interim dividend of S$0.03 a share was declared, up from S$0.02 a share a year earlier. The dividend will be paid out on Sep 9, after the record date on Aug 27.

Hong Leong Asia expects demand in China to be supported by rising demand for advanced engines from data centres and “growth in the export market”, despite mixed domestic demand.

In Singapore and Malaysia, the group expects healthy demand from public and private-sector projects, as well as infrastructure development.

The group said it expects its H2 and full-year performance to be “satisfactory”, barring unforeseen circumstances.

Shares of Hong Leong Asia ended 0.6 per cent or S$0.02 higher at S$3.10 on Wednesday, before the results were released.