Hong Leong Asia has reported revenue of $4.1 billion for FY2023, up 5.2% y-o-y. Thanks to better margins, earnings in the same period grew by 19% to $64.9 million.
Despite the higher earnings, the company is maintaining its dividend at 2 cents per share.
According to HLA, it enjoyed better margins at both its Yuchai, its separately-listed China-based heavy machinery unit, as well as its building materials unit, Tasek.
Even though it sold fewer units, Yuchai's segment profit after tax for the year was up 14.1% while revenue was up 4.3% to $3.4 billion.
The building materials segment enjoyed a 67.2% y-o-y earnings jump to $76.3 million, with revenue up 11% to $650.6 million, thanks to both higher volumes and prices.
Going forward, Hong Leong Asia cautions that market recovery in China "is still in its nascent stage". As such, demand for medium and heavy-duty diesel engines for trucks and buses will only improve "gradually."
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Yuchai will continue to invest in R&D to come up with more efficient products.
In Singapore, demand for building materials is seen to continue to be "strong", thanks to both public and private construction projects.
HLA's new investments in advanced automation such as the integrated construction and prefabrication hub in Punggol Barat will help meet growing demand.
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Tasek, the Malaysia-based cement-making subsidiary of HLA, is seen to enjoy "firm" construction demand but the overall credit environment remains a concern.
The company is "cautiously optimistic" that it will perform satisfactorily in 2024.
Hong Leong Asia shares closed at 60 cents on Feb 28, unchanged for the day but down 11.76% over the past 12 months.
