Quarterly Report For The Financial Period Ended 30 September 2018
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Condensed Consolidated Statements Of Profit Or Loss
And Other Comprehensive Income
For the quarter ended 30 September 2018
Condensed Consolidated Statements Of Financial Position
as at 30 September 2018
Review of Performance
The Group derives revenue from construction and property development activities.
Revenue for the quarter under review is RM173.29 million, an increase of 65% as compared to the preceding year corresponding quarter's figure of RM104.98 million (after restatement of preceding year's figure in line with new accounting policies adopted). The construction segment contributed RM150.17 million (87%) whilst the property development segment registered a contribution of RM23.12 million (13%) to the Group’s revenue during the quarter.
The net profit before tax of the Group for the current quarter is RM19.50 million, an increase of 32% as compared to RM14.82 million (as restated) 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 2018, the revenue and net profit before tax are RM150.17 million and RM10.35 million compared to the previous year’s corresponding quarter figures of RM77.40 million (as restated) and RM6.04 million (as restated) respectively. The revenue for the current quarter has improved by 94% as compared to the previous year’s corresponding quarter while profit before tax has increased by 71%. This was mainly due to higher construction activities carried out during the quarter.
Property development segment: For the 3-month period ended 30 September 2018, the revenue and net profit before tax are RM23.12 million and RM9.15 million compared to the previous year’s corresponding quarter figures of RM27.58 million (as restated) and RM8.78 million (as restated) respectively. Revenue recorded during the current quarter was slightly lower compared to 2017 due to the timing of sales recognised while profit margins remained stable.
Current Year Prospects
With a record order book of RM3 billion with some RM2.4 billion unbilled, the Group will be busy on work execution. There has been an increase in the construction activities which has translated into higher revenue since the Fourth Quarter 2017. Revenue growth has been registered in both the construction and property development sector in the third quarter of 2018 compared to the second quarter and such trend is expected to continue with improved profits. The State Government of Sarawak recently rolled out several mega sized projects such as the Coastal Road and Trunk Road Project as well as water works projects and these contracts are mostly in pre-qualification or tendering stage. Project procurement is undertaken in line with our prudent project management strategies, taking due consideration of the capacity, capabilities and competitive advantages of the Group. 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 2018 and beyond.