Hong Seng Consolidated Berhad announced its first-quarter result which saw a sharp spike in revenue and profits mainly contributed by its healthcare and gloves segments.
Group revenue showed a three-fold increase to RM75.86 million from RM25.29 million a year ago with PAT soaring more than ten times to RM41.38 million as compared to RM3.04 million posted in the preceding year quarter.
Earnings per share also jumped to 1.62 sen in Q1FY22 (3 months financial period ended 31 December 2021), as compared to 0.59 sen for the 3 months financial period ended 31 December 2020.
The Group said that the stellar result was mainly due to the upsurge of revenue and profit from healthcare segments as well as the gloves manufacturing business since its commencement of production in October 2021.
Group Managing Director Dato’ Seri Teoh Hai Hin said: “Hong Seng’s aggressive expansion into new businesses has started to pay off as the Group consistently records positive financial results in recent quarters.
Dato Teoh added that the company is currently in midst of securing a few more new projects, which if materialised, will put the Group on an even stronger footing. Hong Seng’s healthcare arm, HS Bio Group showed progress and contributes to a large portion of the group’s revenue.
Among the expansion undertaken include four key growth drivers namely Healthcare, Glove Manufacturing, Nitrile Butadiene Latex (“NBL”), and Integrated Logistics Services.
The Group’s wholly-owned subsidiary, Hong Seng Gloves Sdn Bhd has commenced operations of its Nitrile Butadiene Rubber double former glove dipping production lines at Sungai Petani, Kedah since October 2021 with only two lines initially and has subsequently increased to four lines to date. Meanwhile, HS Gloves expects to commence productions of its fifth and sixth lines by March 2022 pending a power supply upgrade to be completed. Subsequently, the Group plans to expand the production capacity up to 16 lines by end of 2022.
Meanwhile, the Group has signed an agreement with the Malaysian Northern Corridor Implementation Authority to sublease a 102.6-acres industrial land located at Kedah Rubber City for the purpose of setting up its integrated NBL manufacturing plant with a planned capacity of up to 960KTPA in four phases. NBL is the raw material required to produce nitrile gloves.