Hong Leong Asia H22 has reported earnings of $12.1 million for its 2HFY2022, down 37.2% from the $19.28 million recorded in the previous corresponding period.
Earnings for FY2022 was down 9.3% y-o-y to $54.5 million.
Revenue for 2HFY2022 declined 14.8% y-o-y to $1.78 billion, mainly due to lower revenue recorded by its diesel engines unit Yuchai, partially offset by higher revenue by its buildings materials unit (BMU).
For the full year, revenue was down 21.3% y-o-y to $3.88 billion.
Gross profit for 2HFY2022 was $321.5 million, down $19.7 million from $341.2 million recorded in 2HFY2021. Gross margin for 2HFY2022 stood at 18% compared to 16.3% in the previous corresponding period. The increase in gross margin was mainly due to a change in revenue mix with an increase in off-road segment over the on-road segment, cost reductions as well as lower sales rebates for Yuchai.
For the full year, gross profit was $681.6 million, a decrease of $47.8 million from $729.4 million in FY2021. The year’s gross margin increased to 17.6% in FY2022 as compared to 14.8% in FY2021.
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The company has proposed fist and final dividend of 2 cents per share, subject to shareholders’ approval.
Moving forward, Hong Leong Asia is focused on strengthening its capabilities to execute new growth strategies, improving supply chain resilience and strengthening market position.
With a conservative balance sheet and net cash position, the company is cautiously optimistic that its businesses will perform satisfactorily in 2023.
Shares in Hong Leong Asia closed 2 cents higher or 2.89% up on Feb 24 at 71 cents.
