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Hong Leong Asia posts Q2 net profit of S$8.36m, reverses year-ago loss

HONG Leong Asia saw net profit of S$8.36 million for the second quarter ended June 30, the industrial conglomerate announced on Wednesday.

This was compared with a net loss of S$33 million in the year-ago period, which included a S$36.6 million loss from discontinued operations of its consumer products unit Xinfei.

Profit from continuing operations, net of tax, was S$36 million for the quarter, up 11 per cent from S$32.4 million in the year-ago period.

Revenue for the quarter rose 9.6 per cent to S$1.09 billion, due mainly to higher revenue from its China diesel engines unit Yuchai and its building materials unit. Yuchai's revenue rose 10.9 per cent to S$94.9 million, while building materials revenue was up 6.4 per cent to S$6.9 million.

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Earnings per share for the quarter were 1.12 Singapore cents, compared with a loss per share of 8.81 cents in the year-ago period. No dividend was declared, the same as a year ago.

The company said that the prospects and domestic market conditions for Yuchai are expected to remain challenging, but the unit remains committed to its research and development programmes to meet stricter emission standards.

In Singapore, its building materials unit saw improved sales volumes and pricing in recent tenders. "The construction of the group's precast manufacturing facility, when ready, will enable the precast business division to continue to be a significant player in Singapore," said Hong Leong.

Hong Leong Asia shares closed unchanged at 55.5 Singapore cents on Wednesday before the results release.