ONE-STOP plastic solution provider and property developer HIL Industries Bhd delivered its strongest quarterly results to-date in its 4Q FY2021, buoyed by higher sales contribution from its manufacturing and property divisions as a result of its continuous efforts to improve operating efficiency.
The company’s manufacturing division is involved in plastic injection moulding which produces plastic original equipment manufacturer (OEM) parts mainly for automotive and information technology (IT)-related products.
Its customers include Perusahaan Otomobil Kedua Sdn Bhd (Perodua), Proton Holdings Bhd, Toyota Motor Corp and Honda Motor Co Ltd, to name a few.
The latest quarterly results also boosted HIL Industries’ full-year revenue for FY2021 to a record high which translated to its highest annual net profit in 12 years.
In 4Q FY2021, HIL Industries’ net profit rose 64.9% to its highest ever of RM12.2 mil or 3.71 sen/share from RM7.4 mil or 2.25 sen/share a year ago.
This as the company’s top line increase 26.2% to RM75.7 mil – also its highest quarterly revenue – from RM60 mil with gross margin improving to 27.8% from 24.9%.
With the solid quarter, HIL Industries’ FY2021 net profit further improved to RM30.1 mil or 9.16 sen/share, up 24.9% year-on-year (yoy) from RM24.1 mil or 7.4 sen/share in FY2020. Revenue rose 6.3% to a full-year record of RM173.2 mil from RM163 mil.
The company intends to declare a single-tier final dividend following the commendable results, which will be announced later.
The improvements in both revenue and net profit were recorded in both manufacturing segment and the property development and management segment.
HIL Industries’ manufacturing segment benefited from improvements in its Malaysian subsidiary operations, coupled with the launch of several new models and added with improved efficiency and cost controls.
The property segment meanwhile incurred higher recognitions subsequent to the completion of Amverton Green in 1Q, Amverton Links Phase 1 in 3Q and also the good take-up rate for its Amverton Links Phase 2 project.
Moving forward, HIL Industries’ president/CEO Datuk Milton Ng said the company will strive to achieve better cost optimisation by further streamlining manufacturing process for greater efficiency.
“The manufacturing division is expected to further benefit from the successful take-up in the automotive market including the MyVi, Ativa and several other new models,” he pointed out.
“As for the property division, the Amverton Links Phase 2 will continue to contribute to the company’s property division revenue, while we strategise towards an upcoming launch of 100 townhouses and Phase 3 of the double-storey terrace homes in Amverton Links.”
He added that the group’s recently-approved joint ventures are set to firm up the launch of key projects in Sungai Buloh, Klang and Carey Island across multiple residential property segments this year.
At the same time, HIL Industries continues to explore new opportunities following the successful venture into the manufacturing of surgical grade face masks, KF94 face masks and face shields to support the country’s journey towards recovery from the pandemic.
As of end-December last year, HIL Industries’ financial position remained robust, sporting a cash and cash equivalents of RM113.2 mil. The company had no bank borrowings.
At 4.30pm, HIL Industries was down 1.5 sen or 1.64% to 90 sen with 179.600 shares traded, thus valuing the company at RM301 mil. – Feb 24, 2022
