NHF delivers stronger performance in 2Q18

KUCHING: New Hoong Fatt Holdings Bhd (New Hoong Fatt) recorded RM3.8 million or 6.2 per cent increase in revenue from RM61.7 million in the corresponding quarter of preceding year (2Q17) to RM65.5 million in its second quarter ending June 30, 2018.

The increase in revenue was mainly attributed to higher demand and favourable sales mix in both local and overseas markets.

Profit before tax ( PBT) increased by RM1.1 million or 37.9 per cent from RM2.9 million in 2Q17 to RM4 million in 2Q18.

The increase in PBT was mainly due to lower foreign exchange ( forex) losses for the quarter as compared to the corresponding quarter for preceding year under review but partially offset by higher raw material and other manufacturing costs in the current quarter.

The group recorded RM1.5 million or 1.2 per cent increase in revenue from RM124.1 million in year to date 2Q17 to RM125.6 million in year to date 2Q18.

The increase in revenue was attributed to higher demand in local market but partially mitigated by unfavourable forex impact from overseas market.

PBT however, had decreased by RM4.7 million or 40.9 per cent from RM11.5 million in 2Q17 year to date to RM6.8 million in 2Q18.

This was mainly due to unfavourable forex impact as well as higher raw material and other manufacturing costs in the current YTD period under review.

“The global economy is expected to remain strong in 2018.

However, growth will be uneven as a result of rising trade tensions and oil prices. On the local front, the growth for the automotive industry in the near term is expected to remain relatively sluggish.

“In such a challenging environment, the group will continue to focus on driving business growth through expanding its product range as well as further strengthening its cost competitiveness via various cost efficiency programs and driving higher productivity.”