Hap Seng ... June 09

It is looking at expanding its total landbank by 50% from its current size of slightly over 38,000 hectares in the next two to three years, backed by a strong balance sheet.

It could further explore acquiring land in Kota Marudu, northern Sabah, in which it acquired some 727ha last year but ruled out Indonesia as its current planned expansion was still possible in Sabah.

HSP’s cash and cash equivalents stood at RM50.45 million as at March 31, 2009 (1QFY09), a 35% increase from RM37.34 million a year earlier.

Its net profit rose 5.6% to RM13.9 million in 1Q09 from RM13.17 million a year earlier on the back of a 60% jump in revenue to RM73.25 million from RM45.79 million.

The group’s performance was affected by the seasonal yield pattern of the crops, lower commodity prices and higher cost of production as a result of higher fertiliser costs and adverse weather conditions also affected deliveries.