The one-stop plastic solution provider and property developer net profit for the second quarter ended 30 June 2022
(2QFY22) surged 60.5% to RM6.9 million from RM4.3 million YoY (year-on-year), attributed to strong demand for automotive parts components from its major customers.
Whilst, revenue for the quarter jumped 64.4% to RM42.1 million from 25.6 million a year earlier, due to higher revenue contribution from its manufacturing division.
Meanwhile, earnings per share (EPS) rose to 2.09 sen from 1.29 sen previously.
HIL Industries’ manufacturing division is involved in plastic injection moulding which produces plastic original equipment manufacturer (OEM) parts mainly for automotive and IT-related products.
The Company’s major customers include Perodua, Toyota Motor Corp and Honda Motor Co Ltd. It also serves multi-national
companies in the electronics, telecommunications, and the IT segments.
For 2QFY22, the manufacturing division posted solid results with revenue surging 58.6% to RM27.6 million from RM17.4 million a year ago due to increased orders from its automotive customers brought upon by consumer rush for new vehicles before the end of the sales and services tax (SST) exemption under the Penjana Scheme as well as launches of several new car models.
Revenue contribution from the property development division in 2QFY22 jumped 76.8% to RM14.5 million from RM8.2 million a year ago.
For the cumulative six-month ended 30 June 2022 (1HFY22), HIL Industries posted a net profit of RM13.4 million, up 28.5% from RM10.4 million previously.
Revenue for the period under review stood at RM81.6 million, up 35.4% as compared to RM60.3 million a year ago.
“The surge in new vehicles bookings before the end of the SST exemption for new vehicles coupled with launches of several new car models by its major customers have lifted the Company’s manufacturing business,” Dato’ Milton Ng, Managing Director of HIL Industries said.
“With the estimated delivery backlog of around 500,000 vehicles reported in the industry, we do not foresee any slowdown in demand for automotive parts components from our major automotive customers,” he added.
Dato’ Milton anticipates the manufacturing division will continue to be the main revenue contributor to the Group for this year.
“Whilst labour shortage is still an issue for most industries, with the opening up by our government of the hiring of foreign workers, this bodes well for the economy including the manufacturing sector where we expect this labour shortage to be alleviated in the very near future.
