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28 Feb 2012, 03:44 PMPost #1
New Hoong Fatt posts lower pre-tax profit of RM1.87m

New Hoong Fatt Holdings Bhd recorded a lower pre-tax profit of RM1.868 million for the fourth quarter ended Dec 31, 2011, as against RM7.893 million in the corresponding quarter of 2010. Its revenue fell to RM51.772 million from RM55.309 million.

For the full year, its pre-tax profit was RM25.929 million, down from RM31.304 million in the previous year.

This was mainly due to higher goodwill impairment compared to 2010, and operating loss from the overseas operations in Indonesia and China which were newly set up in 2011, it said in a statement.

The revenue fell to RM215.570 million from RM222.473 million mainly due to the disposal of 60 per cent-owned subsidiary New Kean Tat Auto Parts Sdn Bhd in the third quarter of the financial year, resulting in the reduction of revenue contribution from this subsidiary.

This reduction was mitigated by the increase in revenue from exports by 26.1 per cent compared to 2010, it said, adding that revenue for the local market was largely maintained at 2010 levels.

New Hoong Fatt's Board of Directors has recommended a final single-tier dividend of eight sen per share plus a special final single-tier dividend of one sen per share, totalling RM6.764 million. It expects the operating conditions for 2012 to remain challenging.

The rise in the petroleum price will cause a rise in prices of raw materials and this could adversely affect profit margins, it said.

Key focus areas for the Group are the stabilisation in the performance of the new overseas subsidiaries and improvement in production capabilities and operational cost efficiencies, it said.

The Group is optimistic that it will continue its positive performance for 2012.
-- Bernama

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