KUALA LUMPUR: Hextar Industries Bhd (HIB) registered a cumulative consolidated revenue of RM521 million and net profit of RM41.6 million for the 6 months financial period ended June 30, 2023 (FPE2023). In 2022, the company changed its financial year end from Aug 31 to Dec 31. As such, there is no comparative figures for the corresponding quarter.
For the second quarter ended June 30, 2023 (2Q E2023), HIB posted a quarterly consolidated revenue of RM251 million and net profit of RM21.2 million, higher than the net profit reported in the preceding quarter by 3.9 % (1Q E2023: RM20.4 million). This is the highest net profit recorded in the quarterly reports since HIB was listed on the ACE Market of Bursa Malaysia Securities Bhd (ACE Market).
The company had proposed an interim single tier dividend of one sen per ordinary share in respect of financial year ending Dec 31, 2023. This is the second dividend that the Company has declared in 2023 on the back of its strong financial result.
Commenting on the quarterly results, Benny Ang, the group managing director said that “the average selling prices of fertilisers have softened in the first half of 2023, after reaching a peak in 2022. As a result, HIB posted a lower revenue of RM251 million in 2Q E2023 by 6.7% as compared to 1Q E2023 of RM269 million. Having said that, profit margins were not affected asraw material prices had also reduced accordingly. On a whole, our gross profit margins in FPE2023 has improved marginally as compared to last year.”
Ang further added that “the company is currently in the midst of preparing for the transfer to the Main Market of Bursa Malaysia Securities Bhd. We hope to attract more institutional investors to invest in our company. We target to submit the application for the transfer once we
have met the necessary requirements by fourth quarter of 2023.”
Executive director Alex Sham added that despite the softening in the price of fertilisers, the majority of food commodity prices including crude palm oil (CPO) remain high as compared to pre-pandemic levels. As such, many planters are not cutting back on fertiliser application this year to maintain their yields. The demand for fertilisers remains robust even during the Hari Raya Aidilfitri and Gawai Dayak Festivals.
“We foresee that demand for fertilisers in the coming months will remain strong particularly from planters who had applied less last year due to high fertiliser prices. Demand will also be driven by the export market, in particular from countries such as Indonesia and Myanmar where we have been focusing our marketing efforts,” he added.
Aside from the Fertiliser Division, Sham said they believe that the domestic economy is gaining momentum which will benefit their heavy equipment, forklift, lighting and rental services business. They are also actively seeking merger and acquisition opportunities which could potentially provide synergies with their businesses.