HSL 2Q net profit more than double to RM8.75mil

KUALA LUMPUR: Hock Seng Lee Bhd’s (HSL) net profit more than doubled to RM8.75mil in the second quarter ended June 30 from RM3.95mil in the same quarter a year before.

Revenue for the quarter stood at RM142.79mil as compared with RM83.05mil posted a year ago.

HSL said its construction activities contributed the bulk at RM114.48mil, which is 80% of revenue. Property development delivered RM19.5mil and the general trading segment contributed RM8.48mil to the group’s revenue during the quarter.

In the first six months, HSL posted a net profit of RM17.85mil, up 55.1% from RM11.5mil a year ago while revenue jumped 54.6% to RM302.28mil against RM195.44mil last year.

HSL said the high Covid-19 infection numbers remained a great challenge in opening up the economy and allowing uninterrupted business operations. It has caused many disruptions, logistic difficulties, and chiefly, human resources complications.

Managing director Datuk Paul Yu Chee Hoe said the situation has impacted the construction sector’s timetables and productivity greatly.

“Putting aside this year’s exceptionally inclement weather, the continuing situation of high daily Covid-19 cases in Sarawak is hampering on-site work. The high cases are jeopardising employers and employees’ confidence,” he said in a statement.

“There’s a knock-on effect, a chain reaction. Supplies are affected. Both interstate and intrastate transportation are daily issues, resulting in more extensions-of-time needed. This increases costs and narrows profit margins,” he added.

Commenting on commodity prices, Yu noted that metal prices like aluminium remained high.

HSL’s focus now is to work on replenishing its order book, which is ongoing, while at the same time manage jobs on hand as efficiently as possible given the circumstances.

It said the mega project of Miri Wastewater Project is almost complete, while more than two-thirds of the Package Seven of Pan Borneo Highway is completed.