[HOCK SENG LEE BHD，忙于执行工作]
Revenue for the quarter under review is RM131.76 million, an increase of 39% as compared to the preceding year corresponding quarter’s figure of RM94.92 million (after restatement of preceding year’s figure in line with new accounting policies adopted). The net profit before tax of the Group for the current quarter is RM18.54 million, an increase of 24% as compared to RM14.91 million (as restated) for the preceding year’s corresponding quarter.
Construction segment: For the 3-month period ended 31 March 2018, the revenue and net profit before tax are RM114.31 million and RM13.24 million compared to the previous year’s corresponding quarter figures of RM80.80 million (as restated) and RM10.80 million (as restated) respectively. The revenue for the current quarter has improved by 41% as compared to the previous year’s corresponding quarter while profit before tax has increased by 22%. This was mainly due to higher construction activities carried out during the quarter.
Property development segment: For the 3-month period ended 31 March 2018, the revenue and net profit before tax are RM17.45 million and RM5.30 million compared to the previous year’s corresponding quarter figures of RM14.12 million (as restated) and RM4.11 million (as restated) respectively. The revenue for the current quarter has increased by 24% as compared to the previous year’s corresponding quarter while profit before tax has increased by 29%. Higher revenue was recorded during the current quarter due to recognition of sales while profit margins remained stable.
With a record order book of RM3 billion and some RM2.5 billion of this unbilled, the Group will be busy on work execution. There has been an increase in construction activities which has translated into higher revenue since the Fourth Quarter of 2017. This trend is expected to continue. Margins are also recovering. The Group is optimistic given the reiteration of the present Federal Government that good infrastructure is key to economic development and its indication that as much as 30% of the national budget allocation for development is to be deployed for Sabah and Sarawak. This augurs well for contract opportunities for the Group. Project procurement will be undertaken in line with their prudent project management strategies, taking due consideration of the capacity and capabilities of the Group. HSL foresees the property development segment, with a variety of products on offer, will make a greater impact on the business of HSL Group in 2018 and beyond.
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