Friday 29 Mar 2024
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KUALA LUMPUR (Sept 26): Hiap Teck Venture Bhd’s net profit fell 13.9% to RM10.7 million in the fourth financial quarter ended July 31, 2014 (4QFY14) from RM12.4 million a year ago, on weaker margins and lower other income.

Hiap Teck also noted that in 4QFY13, the group included a one-time compensation gain from a lawsuit settlement of RM2.8 million.

However, revenue for 4QFY14 nudged up 3.7% year-on-year to RM284.2 million from RM273.9 million, mainly due to its trading division which recorded a 7.3% growth in revenue to RM144.2 million.

Hiap Tech also proposed a final dividend of 0.6 sen per share for the financial year ended July 31, 2014 (FY14).

For the full financial year, net profit rose 87.7% to RM45.6 million from RM24.3 million in FY13, while revenue was up marginally to RM1.110 billion from RM1.107 billion.

Hiap Teck said the significant jump in profit was principally due to improved margins arising from continuous improvements in operating efficiency.

It added its jointly-controlled entity also contributed a share of profit of RM0.48 million compared with a loss of RM3.77 million in FY13.

The group said the flat revenue was due to an offset to revenue growth in its manufacturing division by the revenue decline in its trading division.

Going forward, Hiap Teck said the outlook for the global steel market remains challenging on the back of the oversupply situation.

It added that as China’s economy continues to be soft and the modest growth of the developed economies, global steel demand is not expected to improve significantly in the near term.

The group expects international steel prices to remain weak in the near future.

In a separate announcement, Hiap Teck said it has appointed Tan Shau Ming as executive director of the group.
 

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