Hong Leong Industries feel pinch of rising material cost, energy price

HONG Leong Industries Bhd (HLI), an automotive and building materials player, is feeling the pinch of rising material cost and energy prices.

Its net profit for the three-month period till June 2022 was marginally lower than the same period a year ago despite an increase in revenue due to higher costs for motorcycle business material and energy, as well as an unfavourable exchange of the USD against Ringgit Malaysia.

For the second quarter ended June 30, 2022 (2QFY23), the company posted a net profit of RM73.53 million on a turnover of RM841.61 million. For the first six months, it posted a net profit almost doubled to RM155.41 million from RM74.44 million on a turnover of RM1.73 billion, according to its exchange filing yesterday.

It said the group will continue to improve the plant productivity, reduce costs and develop new products to overcome these challenges.

HLI is the publicly listed holding company of Hong Leong Yamaha Motor Sdn Bhd, HLY Marine Sdn Bhd, Guocera Holdings Sdn Bhd and Hume Cemboard Industries Sdn Bhd.

Its share price closed at RM8.95, giving it a market capitalisation of RM2.93 billion. – TMR

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