Hong Leong Asia H2 net profit rises 12.2% to S$38.2 million

HONG Leong Asia reported a net profit of S$38.2 million for its second half ended Dec 31, 12.2 per cent higher than the S$34.1 million recorded in the year-ago period. 

Revenue stood at S$1.998 billion for the group, which manufactures and sells powertrain solutions and building materials, down 0.4 per cent from S$2 billion the year before. 

Its profitability was boosted by strong performances in its powertrain solutions and building materials units, the group said on Wednesday (Feb 26). This was on the back of higher sales volumes in the marine and power generation business, as well as improved market conditions in Singapore and Malaysia that resulted in greater sales volumes for ready-mixed concrete, Hong Leong added. 

Earnings per share for H2 came in at S$0.0511, a 12.2 per cent increase from S$0.0456 in the same period the year before.  

For the full year, Hong Leong reported a 35.3 per cent rise in net profit to S$87.8 million, compared with S$64.9 million in the previous financial year.

FY2024 revenue stood at S$4.2 billion, up from S$4.1 billion the year before. 

The group declared a total dividend of S$0.04 per share, double the S$0.02 per share in the previous year. 

Hong Leong said its building materials unit in Singapore expects its order book in the pre-cast and ready-made concrete segments to continue growing, in light of new public- and private-sector projects.

However, the group also said it “expects challenges from higher input costs and disruptions in supply chains as geopolitical tensions rise and trade wars escalate”.

Hong Leong Asia is the trade and industry arm of Hong Leong Group, whose executive chairman is Kwek Leng Beng. He declared that on Tuesday, he had filed a lawsuit against his son Sherman Kwek to address an “attempted coup”.  

Kwek Leng Beng’s cousin, Kwek Leng Peck, is the executive chairman of Hong Leong Asia.

Shares of Hong Leong Asia closed flat at S$1.02, after the announcement.