KUALA LUMPUR: One-stop plastic solution provider and property developer HIL Industries Bhd's (HIB) net profit jumped 74.4 per cent to RM7.5 million for the third quarter (Q3) ended 30 September 2021 from RM4.3 million same quarter a year ago.

Revenue rose 45.7 per cent to RM37.3 million from RM25.6 million a year ago.

The Full Movement Control Order (FMCO) from 1 June to 15 August this year has affected its manufacturing division operations for a total of 76 days, of which 46 days were in Q3.

For the nine months (9M) period, the company posted a higher net profit of RM17.9 million for FY21, from RM16.7 million a year ago on higher contribution from its property development division.

The period's earnings per share have also improved to 5.44 sen from 5.16 sen previously.

The company's revenue for 9M FY21 however contracted 5.3 per cent to RM97.6 million from RM103.0 million in the previous year due to the reimposition of the full movement control (FMCO) from 1 June to 15 August, which has caused disruptions in its manufacturing operations.

HIB's manufacturing division is involved in plastic injection moulding, which produces plastic original equipment manufacturer (OEM) parts mainly for automotive and IT-related products.

Its customers include Perusahaan Otomobil Kedua Sdn Bhd (Perodua), Toyota Motor Corp, Honda Motor Co Ltd and others.

President and chief executive officer Datuk Milton Ng said the increase in earnings was mainly due to the higher profit recognition after completing Amverton Greens and Amverton Links Phase 1 in the first quarter and third quarter, respectively.

"Despite a lower revenue and higher operating expenses in 9M FY21, HIB managed to sustain its gross profit.

"The company's gross profit for the period increased 5.6 per cent to RM30.1 million from RM28.4 million previously," he said in a statement today.

As of 30 September 2021, HIB's financial position remained robust, with cash and cash equivalents of RM119.2 million.

The company had no bank borrowings.

Moving forwards, HIB will continue to implement various costs containment exercise focusing on productivity improvements, and strive to be proactive in aligning its market strategies to capture the opportunities in manufacturing and property division.

"As for the manufacturing division, with the successful vaccination programmes under the National Covid-19 Immunisation Programme and various stimulus and assistance packages for support the people and revitalise the economy, we are optimistic that the manufacturing division is in a good position to manage the challenges and continue contribute positively to the company," Milton said.

As for the property division, Milton said revenue would be mainly from the ongoing Amverton Links Phase 2 and the company's completed project, 108 terrace house in Bukit Kemuning and Amverton Greens.

"With the extension of the Home Ownership Campaign until 31 December 2021, the management is optimistic that the property division will contribute satisfactorily to the group's performance," Milton further added.

The company is optimistic that the manufacturing and property development and management division will contribute

positively to HIB's performance for the remainder of 2021.