Ho Hup Q1 profit jumps to Rm15.85mil

PETALING JAYA: Ho Hup Construction Company Bhd has nearly tripled its net profit to Rm15.85mil for the first quarter ended March 31, 2020, compared to the corresponding quarter last year.

This was mainly attributed to higher recognition of revenue from property development, but lower revenue from the construction division.

Revenue for the quarter grew 89.6% year-on-year (y-o-y) to Rm80.3mil.

From this figure, the property development division contributed

Rm23.17mil, representing a y-o-y increase of 257.3% during the quarter, as Ho Hup recognised progressive billings from the Phase 2 Park Residence, sale of Pavilion Bukit Jalil Mall and the progressive sale of Kota Kinabalu Crown development units.

In a Bursa Malaysia filing, Ho Hup said its construction division faced slower progression of the rehabilitation work in Besut, bridges in Teluk Intan, Yong Peng road project, and construction of the Technical Vocational College (TVET) in Kulai.

Going forward, Ho Hup expects the remaining financial year 2020 to be challenging in view of the Covid-19 pandemic, which has impacted the entire economy with great uncertainty.

“Accordingly, the management is taking timely actions to realign project activities to market demand, in order to protect its profitability,” it said.

On Wednesday, Ho Hup had received letters of acceptance from China Communications Construction (ECRL) Sdn Bhd for the engineering, procurement, construction and commissioning of the East Coast Rail Link (ECRL) project.