Written by The Edge
Mainboard-listed Hoe Leong Corporation, the supplier of heavy equipment parts and vessel charterer, says net profit attributable to owners of the company increased by 276.8% to $3 million for the half year ended 30 June 2010 (HY2010) from $0.8 million in HY2009 as a result of improved revenue and gross profit performance as well as stable operating expenses.
For HY2010, the group recorded an increase of 13.5% to $32.8 million from $28.9 million in HY2009. This was mainly attributable to revenue increase from all its business segments – namely Design and Manufacture, Trading and Distribution; and Barge and Vessel Chartering.
The Indonesian and Russian markets mainly contributed to the $0.7 million increase in revenue from the Design and Manufacture segment, whereas revenue from the Trading and Distribution segment increased by $0.7 million mainly due to higher revenue from the Indonesian, Australian and the African markets where the group experienced higher customer demand.
Revenue from the Barge and Vessel Chartering segment increased by $2.5 million, due to the additional revenue contributed by the latest vessel, Supreme Voyager, which commenced operations in late December 2009.
In tandem with the revenue increase, the group’s gross profit for HY2010 rose 30.1% to $11.6 million from $8.9 million in HY2009. Correspondingly, the group’s gross profit margin for HY2010 also increased to 35.4% from 30.8% in HY2009, due to the higher profit margins from its Barge and Vessel Chartering business.
Dividend : None
