KUALA LUMPUR, Hong Leong Industries Bhd’s net profit rose to RM387.89 million in the financial year ended June 30, 2024 (FY2024), up from RM290.61 million in FY2023, due to a sales mix of higher-margin motorcycle models.

In a filing with Bursa Malaysia today, the motorcycle assembler said the higher net profit was also contributed by a RM25 million insurance compensation received for the disruption caused by floods in the motorcycle business during the third quarter of FY2022 and an RM18.7 million gain from the disposal of entire equity interest in Hume Cemboard Industries Sdn Bhd (HCB).

Revenue, however, declined to RM3.11 billion from RM3.42 billion due to lower sales of the motorcycle business recorded in the first three quarters of the current financial year.

Net profit for the fourth quarter ended June 30, 2024 (4Q FY2024) increased to RM98.33 million from RM69.29 million, contributed by both the higher sales of motorcycles business and the improved performance of an associated company, it said.

The
group’s revenue jumped to RM773.66 million from RM767 million, mainly contributed by higher sales and market demand for motorcycles.

On prospects, the group said motorcycle demand has shown signs of improvement towards the end of the current financial year, which will bode well for its FY2025, and will continue its focus on products, market position and cost to further improve the performance.

‘For our tiles sector, the group has now committed to building a new plant with production expected to begin in 2026.

‘Barring any unforeseen circumstances, the board expects the group to achieve a satisfactory result for FY2025,’ it added.

Source: BERNAMA News Agency