Hup Seng Industries Reports Profit Increase

Malaysian snack maker, Hup Seng Industries, experienced a surge in its shares after announcing impressive profit growth. The company's stock rose by as much as 18%, and at present, it is 13% higher, trading at 0.82 ringgit. Over the past year, Hup Seng Industries has seen gains of 25%.

Hup Seng Industries released a statement on Wednesday, revealing that their net profit for the third quarter had risen to MYR13 million ($2.8 million), a substantial increase from MYR3.8 million the previous year. This growth was primarily attributed to strong domestic sales and improved exports to Thailand and Singapore. Furthermore, their quarterly revenue soared by 34% to MYR94.2 million.

Looking ahead, Hup Seng Industries anticipates a normalization of profit margins due to the decline in wheat and crude palm oil prices. Genevieve Ng Pei Fen, an analyst at MIDF Research, stated in a note that these factors will drive the expected shift. As a result of surpassing expectations, MIDF has revised its earnings estimates for Hup Seng in 2023 and 2024 by 17.4% and 4.1%, respectively, while reaffirming its buy rating for the stock.