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KUALA LUMPUR: HIL Industries Bhd’s net profit for the second quarter ended June 30 (2Q) surged 60.5% to RM6.9mil from RM4.3mil a year prior, on strong demand for automotive parts components from its major customers.

The plastic solution provider and property developer’s revenue for the quarter jumped 64.4% to RM42.1mil from RM25.6mil a year earlier, due to higher revenue contribution from its manufacturing division.

Its earnings per share rose to 2.09 sen from 1.29 sen previously.

For the first six months to June 30, HIL Industries posted a net profit of RM13.6mil, up 29.8% from RM10.6mil previously while revenue rose 35.4% to RM81.6mil against RM60.3mil a year ago.

Managing director Datuk Milton Ng said the surge in new vehicles bookings before the end of the sales and services tax exemption for new vehicles coupled with launches of several new car models by its major customers have lifted the company’s manufacturing business.

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“With the estimated delivery backlog of around 500,000 vehicles reported in the industry, we do not foresee any slowdown in demand for automotive parts components from our major automotive customers,” he said.

On the outlook, Ng anticipates the manufacturing division will continue to be the main revenue contributor to the group.

“Whilst labour shortage is still an issue for most industries, with the opening up by our government of the hiring of foreign workers, this bodes well for the economy including the manufacturing sector where we expect this labour shortage to be alleviated in the very near future.

“At the same time, we have also secured additional businesses from our existing customers and we expect to grow our business with the upcoming launch of several new models in the upcoming months,” Ng said.

As for the property division, HIL Industries still expect healthy contributions from the ongoing Amverton Links Phase 2 and sale of the completed Amverton Greens project in Bukit Kemuning.