By Ying Xian Wong
Hup Seng Industries shares rose Thursday morning after reporting a sharp profit increase.
Shares of the Malaysian snack maker jumped as much as 18% and were recently 13% higher at 0.82 ringgit, bringing 12-month gains to 25%.
Hup Seng Industries said late Wednesday that third-quarter net profit rose to MYR13 million ($2.8 million) from MYR3.8 million a year earlier, mainly driven by robust domestic sales and improved exports to Thailand and Singapore.
Quarterly revenue was 34% higher at MYR94.2 million.
Going forward, Hup Seng’s profit margin is expected to normalize, driven by softer wheat and crude palm oil prices, MIDF Research analyst Genevieve Ng Pei Fen said in a note.
MIDF revised up its 2023 and 2024 earnings estimates on Hup Seng by 17.4% and 4.1%, respectively, after the earnings beat, and kept a buy rating on the stock.
Write to Ying Xian Wong at yingxian.wong@wsj.com
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