Haily Group reports strong Q3 FY24 results driven by continued growth in construction projects

KUALA LUMPUR: Haily Group Bhd’s (HGB) profit before tax grew by 17.07% to RM2.98 million for the third quarter (Q3) ended September 30, 2024 (FY24), while net profit rose by 4.49% to RM2.14 million.

Revenue for Q3 FY24 inched 1.61% higher to RM84.83 million from RM83.48 million posted in Q3 of FY23.

The growth is attributed to steady progress across ongoing construction projects.

For the nine months of FY24, HGB achieved a net profit of RM6.19 million, a notable increase of 29.56% compared to RM4.78 million in the same period last year.

Gross profit for Q3 FY24 rose to RM7.91 million, representing an increase of 18.32% from RM6.68 million posted in Q3 FY23.

The gross profit margin for Q3 FY24 improved to 9.32%, up from 8.00% for Q3 FY2023, reflecting the company’s continued focus on cost management and operational efficiency.

For 9M FY24, HGB reported revenue of RM239.56 million, representing an 8.57% increase compared to RM220.64 million in the same period of the previous year.

This growth was primarily driven by steady progress across its ongoing construction projects, underscoring the company’s ability to execute its pipeline effectively.

HGB continues to maintain a strong financial position as a net cash construction company, with cash and short-term deposits totalling RM21.47 million as of September 30, 2024.

This solid cash position reinforces the company’s resilience and capacity to fund operations and future growth opportunities.

Additionally, the group recorded a positive cash flow from operations of RM5.42 million for 9M FY24, marking a turnaround from a net outflow of RM8.79 million in the same period of the previous year.

Founder and executive director See Tin Hai said the company registered approximately RM732.41 million in the value of contracts secured for 2024, significantly surpassing the RM272.14 million secured in all of 2023.

“With a robust order book and a strong financial position, we are poised to capitalise on the positive outlook of Malaysia’s construction sector.

“Our focus remains on operational efficiency and delivering quality projects that drive sustainable growth for the group,“ he said.

HGB currently has 25 ongoing projects, with a cumulative total contract value exceeding RM1.11 billion, reinforcing a strong pipeline of work for the next two years.

These projects are expected to be progressively completed between 2024 and 2026.

The Malaysian construction sector is forecasted to grow by 6.7% in 2024 and 9.4% in 2025, fueled by continued activities in the residential, civil engineering, and infrastructure subsectors.

Johor, which recorded the second-highest value of construction work done in Q3 FY24 at RM6.9 billion, remains a critical focus for HGB.

The company’s established presence in Johor positions it to benefit from the state’s thriving property market and ongoing infrastructure projects.

Looking ahead, the group remains cautiously optimistic about its growth prospects, supported by its strong operational capabilities, robust order book, and positive industry trends.

HGB is committed to maintaining its strategic focus on Johor while exploring new opportunities to further strengthen its market position in the southern region of Peninsular Malaysia’s construction industry.