Hap Seng's 2Q Net Profit Slips To RM143.68 Mln

KUALA LUMPUR, Aug 28 (Bernama) -- Hap Seng Consolidated Bhd’s net profit dipped to RM143.68 million in the second quarter ended June 30, 2025 (2Q 2025) from RM170.13 million in the same period last year.

Revenue for the quarter under review also slipped to RM1.30 billion from RM1.42 billion previously, affected by lower revenue from all divisions except the automotive and building materials divisions.

“The plantation division’s revenue for the current quarter of RM156.1 million was 15 per cent lower than the preceding year’s corresponding quarter of RM182.8 million, mainly due to lower crude palm oil (CPO) and palm kernel (PK) sales volume, mitigated by higher average selling prices of all palm products.

“For the current quarter, CPO and PK production were marginally higher than the preceding year’s corresponding quarter in tandem with increased fresh fruit bunches production resulting from improved seasonal yield trend and changes in cropping pattern,” it said.

For the property division, revenue was lower by six per cent to RM237.3 million from RM252 million previously, while operating profit was two per cent higher at RM153.9 million from RM151 million in the preceding year’s corresponding quarter.

For the half year ending June 30, 2025, net profit was RM245.35 million from RM307.41 million in the same period the preceding year. Revenue was also lower at RM2.47 billion compared to RM2.75 billion in the same half year period the year before.

“The division’s performance was weighed down by lower contribution from its property development segment, mitigated by higher contribution from its hospitality segment and sale of land.

“The property development segment’s revenue declined by 49 per cent in the current quarter mainly due to the depletion of property stocks in Peninsular Malaysia and fewer units sold in East Malaysia,” said Hap Seng.

On prospects, the group remains cognisant of the uncertain global market environment and its potential impact on the domestic economy.

“We will closely monitor developments to effectively manage challenges affecting our business operations.

“Based on the foregoing, the board is cautiously optimistic of achieving satisfactory results for the financial year ending Dec 31, 2025,” it added.

-- BERNAMA