Oriental Holdings Posts Higher 3q Net Profit Of Rm297.42 Mln

KUALA LUMPUR, Nov 29 (Bernama) -- Oriental Holdings Bhd has registered a higher net profit of RM297.42 million in the third quarter ended Sept 30, 2023 (3Q FY2023) compared to RM102.35 million recorded in the same period last year. 

Revenue was up to RM1.09 billion from RM960.25 million.

In a filing with Bursa Malaysia, Oriental Holdings said that for the cumulative nine-month period ended Sept 30, 2023 (9M 2023), its net profit improved to RM516.85 million from RM507.00 million previously, while revenue increased by 7.6 per cent to RM3.06 billion from RM2.84 billion in the previous corresponding period.

It said the revenue increase in 9M 2023 was mainly attributed to the higher revenue from automotive and investment properties and trading of building material products segments.

"The revenue and operating profit from the automotive segment increased by 10.4 per cent to RM1.56 billion and 225.8 per cent to RM141.9 million, respectively. 

"The investment properties and trading of building material products segment recorded a 14.5 per cent increase in revenue to RM370.5 million (2022: RM323.7 million) in line with higher selling price," it said. 

However, the group said that the lower 9M operating profit of RM2.4 million (2022: RM5.7 million) was mainly due to a lower gross profit margin as the segment faces stiff price competition for building material products.

On prospects, Oriental Holdings said the group will continue to demonstrate resilience by placing emphasis on improving its efficiency and looks forward to seeking business opportunities to add synergy to existing business.

It said the automotive segment will continue contributing to the group’s performance under competitive market conditions with strong and aggressive promotional campaigns by the industry players.

"Management will continue to exercise cost rationalisation, productivity improvement and source for new business ventures to improve the plastic segment performance.

"Meanwhile, the plantation segment’s management will take necessary steps to ensure that all estates and mills remain efficient, cost-effective and competitive," it said. 

Oriental Holdings said that the hotels and resorts segment will continue to uphold its longstanding commitment to maintaining and promoting high standards of ethics and integrity across the segment.

It added that the healthcare segment will continue to focus on strengthening brand awareness and positioning the hospital for sustainable growth. 

-- BERNAMA