HAP SENG CONSOLIDATED NET PROFIT FALLS 19 PCT TO RM650.48 MLN IN FY2024

KUALA LUMPUR, Feb 28 (Bernama) -- Hap Seng Consolidated Bhd’s net profit fell 19 per cent to RM650.48 million in the financial year ended Dec 31, 2024 (FY2024), compared with RM800.32 million in FY2023, due to a gain from the disposal of subsidiaries in the preceding year.

Revenue declined seven per cent to RM5.63 billion versus RM6.09 billion previously.

However, for the fourth quarter (4Q) FY2024, the group's net profit surged 301 per cent to RM149.96 million, while revenue rose to RM1.40 billion from RM1.31 billion previously.

“The strong performance was driven by increased revenue from the plantation, property, and building materials divisions, though partially offset by a decline in revenue from the credit financing, automotive, and trading divisions,” the group said in a filing with Bursa Malaysia.

Hap Seng said the plantation division’s revenue for the 4Q  stood at RM233.4 million, 34 per cent higher than the preceding year's corresponding quarter, benefitting from the higher average selling price of all palm products and increased crude palm oil (CPO) sales volume.

The property division’s revenue for the quarter rose 58 per cent to RM229.7 million from RM145.5 million in the corresponding quarter of the previous year, benefiting mainly from land sales.

Meanwhile, the credit financing division maintains a conservative approach to new loan approvals,  adhering to a prudent lending policy to mitigate sectoral risks and uncertainties. 

“The total loan base at year-end declined to RM2.21 billion from RM2.42 billion in the preceding year. Consequently, the division’s revenue for the quarter fell to RM42.9 million from RM51.3 million in the corresponding quarter of the previous year," it said.

Looking ahead, Hap Seng's board remains cautiously optimistic about delivering satisfactory results for FY2025, it added.

-- BERNAMA