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Quarterly Report For The Financial Period Ended 30 September 2017

Financials Archive

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Condensed Consolidated Statements Of Profit Or Loss
And Other Comprehensive Income

For the quarter ended 30 September 2017

Condensed Consolidated Statements Of Financial Position

as at 30 September 2017

In thousand of RM

Review of Performance

The Group derives revenue from construction and property development activities.

Revenue for the quarter under review is RM126.33 million as compared to the preceding year corresponding quarter's figure of RM136.03 million. The construction segment contributed RM98.75 million (78%) whilst the property development segment registered a contribution of RM27.58 million (22%) to the Group's revenue during the quarter.

The net profit before tax of the Group for the current quarter is RM15.11 million, a decrease of 31% as compared to RM21.82 million for the preceding year's corresponding quarter.

The changes in revenue and net profit before tax were contributed by the following segments:

Construction segment: For the 3-month period ended 30 September 2017, the revenue and net profit before tax are RM98.75 million and RM6.33 million compared to the previous year's corresponding quarter figures of RM119.64 million and RM16.40 million respectively. The revenue for the current quarter has decreased by 17% as compared to the previous year's corresponding quarter while profit before tax has decreased by 61%. The lower revenue was due to timing of progress claims for construction works as major contract works are at their initial stages of execution. The profit margin for the works executed during the quarter was also lower.

Property development segment: For the 3-month period ended 30 September 2017, the revenue and net profit before tax are RM27.58 million and RM8.78 million compared to the previous year's corresponding quarter figures of RM16.39 million and RM5.42 million respectively. The revenue for the current quarter has increased by 68% as compared to the previous year's corresponding quarter while profit before tax has increased by 62%. Higher revenue was recorded during the current quarter due to recognition of sales from new launches while profit margins remained stable.

Current Year Prospects

With a record order book of RM3 billion in hand, the Group is now busy on work execution. Nevertheless, the Group will continue to bid for projects that are related to our core business in infrastructure works. Our procurement initiative shall be undertaken in line with our prudent project management strategies, taking due consideration of the capacity and capabilities of the Group. The Sarawak Corridor of Renewable Energy (SCORE) initiative as well as the forces of industralisation and urbanization provides further contract opportunities for HSL in the key SCORE growth node towns of Tanjung Manis, Mukah and Samalaju and the major cities of Sarawak. HSL foresees the property development segment, with a variety of products on offer, will make a greater impact on the business of HSL Group in 2017 and beyond.