Hong Leong Industries Profit Jumps on Strong Yamaha Sales

Hong Leong Industries posts 19% quarterly profit growth to RM117.16 million, driven by higher Yamaha motorcycle sales and lower raw material costs.

Subscribe to our Telegram channel for instant updates!

Hong Leong Industries Bhd (HLIB), the distributor of Yamaha motorcycles in Malaysia and Vietnam, has posted a sharp 19.2% rise in quarterly net profit, fuelled by stronger motorcycle sales and lower raw material costs thanks to favourable currency exchange.

Strong Quarterly Numbers

For the three months ended June 30, 2025 (4QFY2025), net profit rose to RM117.16 million, compared to RM98.33 million a year earlier, according to its bourse filing on Monday.

• Earnings per share: 36.82 sen (up from 31.24 sen).
• Revenue: RM841.90 million (up 8.4% from RM776.57 million), supported by improved sales volume.

HLIB manufactures and sells motorcycles, scooters, and parts, while also producing ceramic tiles under the Guocera brand. It distributes marine and automotive products and collaborates with partners to produce motorcycles and engines.

Full-Year Performance and Dividends

For FY2025, net profit expanded 25.3% to RM486.03 million from RM387.90 million the previous year. Revenue climbed 14.6% to RM3.57 billion.

Despite the strong results, the board did not propose a final dividend. Instead, it declared two interim single-tier dividends totalling 80 sen per share, down from 107 sen in FY2024.

The group remains confident about motorcycle demand in FY2026, citing strong operational performance and investments in automation to drive future growth.

Margins Improve Despite Tax Setback

The year’s performance came despite a one-off RM28 million sales tax provision in 3QFY2025. The tax stemmed from the group’s unsuccessful defence in the Federal Court against an appeal by the Royal Malaysian Customs Department concerning sales tax imposed on motorcycle parts.

Even so, profitability strengthened:

• Gross profit margin: up 3.03 percentage points to 26.77%.
• Operating margin: up 3.44 percentage points to 21.63%.
• Operating expenses: RM173.54 million (up 6.7%).
• Finance costs: RM913,000 (down 22.45%).

Market Performance

HLIB shares ended the day four sen lower at RM12.58, valuing the company at RM4.13 billion. Year-to-date, the stock has slipped 11.03%, even as earnings momentum improves.

Outlook

With demand for Yamaha motorcycles showing resilience in both Malaysia and Vietnam, Hong Leong Industries is positioning itself for another strong year. The combination of automation investments, stronger margins, and stable consumer demand is expected to sustain growth heading into FY2026.