Oriental 3Q net profit down 70% on absence of one-off gains

• Revenue for the quarter rose 20.72% to RM1.31 billion from RM1.09 billion in the third quarter of financial year ended Dec 31, 2023 (3QFY2023), on its automotive segment’s higher number of cars sold spurred by high demand for the Honda Civic.

KUALA LUMPUR (Nov 21): Oriental Holdings Bhd (KL:ORIENT) saw the diversified group’s net profit for the third quarter fall 70.12% year on year to RM88.87 million, from RM297.42 million on the absence of one-off gains recognised in the corresponding quarter in 2023.

Revenue for the quarter rose 20.72% to RM1.31 billion from RM1.09 billion in the third quarter of financial year ended Dec 31, 2023 (3QFY2023), on its automotive segment’s higher number of cars sold spurred by high demand for the Honda Civic.

In 3QFY2023, the group recognised a gain from a bargain purchase on step acquisition of an associate Southern Perak Plantations Sdn Bhd of RM102.4 million and a gain on disposal of an associate of RM116.4 million.

No dividend was proposed for 3QFY2024.

For the nine months ended Sept 30 (9MFY2024), Oriental’s net profit fell 13.61% to RM446.53 million from RM516.85 million in the same period last year, while cumulative revenue rose 20.45% to RM3.68 billion as compared to RM3.06 billion.

Going forward, Oriental said the automotive market will remain competitive with industry players’ strong and aggressive promotional campaigns.

“The board will continue to demonstrate resilience by placing emphasis on improving our efficiency and look forward to seek business opportunities to add synergy to existing business,” it added.

Shares in Oriental ended 12 sen or 1.59% higher at RM7.65, valuing the group at RM4.75 billion.

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