Proactive Strategy Amidst Volatile Market Conditions
Harn Len Corp Bhd is taking a proactive and cautious approach to its business operations, implementing a range of strategies to safeguard its financial health and operational stability. The plantation group is primarily focused on enhancing efficiency and undertaking cost rationalization measures to mitigate any potential negative impacts from the fluctuating market. The company has observed that crude palm oil (CPO) prices are currently oscillating within a range of RM3,900 to RM4,100 per tonne, with price movements in June 2025 being influenced by a surge in global crude oil prices and the recent ceasefire in the Israel-Iran conflict. Despite this volatility, Harn Len remains cautiously optimistic, anticipating that sustained high demand from India and strong prices for soybean oil will help maintain CPO prices. The company’s forecast for the year indicates that the average CPO price is expected to remain above RM4,000 per tonne, providing a degree of stability for its core business. This strategic focus on efficiency and cost control is essential for navigating the unpredictable global commodities market.
Strong Quarterly and Annual Financial Performance
The company’s strategic focus has yielded strong financial results, as evidenced by its robust performance in the fourth quarter. Harn Len reported a significant surge in its net profit for the quarter ended May 31, which reached an impressive RM22.5 million, or 3.68 sen per share. This represents a substantial increase from the RM1.5 million, or 0.27 sen per share, reported during the same period a year ago. This strong quarterly performance was a key contributor to the company’s overall full-year profit, which totaled RM33.4 million, or 5.75 sen per share. Furthermore, quarterly revenue also saw a healthy increase, rising by 39.3% to RM70.9 million from RM50.9 million in the previous year’s quarter. This led to a full-year revenue of RM283.2 million. The company attributed this higher operating revenue primarily to an increase in the sales volumes of both crude palm oil and palm kernel, highlighting strong demand for its products. A notable portion of the profit surge was specifically due to a one-time gain from the disposal of an investment property.
Rewarding Shareholders with a Special Dividend
In recognition of its strong financial performance and in a move to reward its shareholders, Harn Len Corp Bhd has declared a special dividend of 3.00 sen per share for the financial year that ended on May 31, 2025. This special dividend is a positive signal to the market, indicating the company’s confidence in its financial position and its commitment to returning value to its investors. The dividend is scheduled for payment on July 15, to all shareholders who are on record as of July 1. The declaration of this special dividend, in addition to the solid financial results, serves to reinforce the company’s appeal to investors and its commitment to delivering tangible returns. This action underscores the company’s strategic balance between reinvesting in its operations for long-term growth and providing immediate financial benefits to its shareholders, demonstrating a well-rounded and sound approach to corporate financial management.
