Quarterly Report For The Financial Period Ended 31 December 2017
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Condensed Consolidated Statements Of Profit Or Loss
And Other Comprehensive Income
For the quarter ended 31 March 2017
Condensed Consolidated Statements Of Financial Position
as at 31 March 2017
Review of Performance
The Group derives revenue from construction and property development activities.
Revenue for the quarter under review is RM105.18 million, a decrease of 26% as compared to the preceding year corresponding quarter's figure of RM142.26 million. The construction segment contributed RM91.06 million (87%) whilst the property development segment registered a contribution of RM14.12 million (13%) to the Group's revenue during the quarter
The net profit before tax of the Group for the current quarter is RM15.05 million, a decrease of 30% as compared to RM21.54 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 31 March 2017, the revenue and net profit before tax are RM91.06 million and RM10.94 million compared to the previous year's corresponding quarter figures of RM120.93 million and RM13.57 million respectively. The revenue for the current quarter has decreased by 25% as compared to the previous year's corresponding quarter while profit before tax has decreased by 19%. 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 period remained stable.
Property development segment: For the 3-month period ended 31 March 2017, the revenue and net profit before tax are RM14.12 million and RM4.11 million compared to the previous year's corresponding quarter figures of RM21.33 million and RM7.97 million respectively. Revenue recorded during the current quarter was lower compared to 2016 while margin has decreased due to higher cost and the type/mix of properties sold.
Current Year Prospects
Despite a record order book of RM2.8 billion in hand, the Group will continue to bid for projects that are related to our core business in infrastructure works. Such additional procurement shall be undertaken in keeping 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.