Hoe Leong Corporation, the supplier of heavy equipment parts and barge charterer, says net profit attributable to equity holders increased significantly to $4.5 million in FY09 ended 31 December 2009 from $0.2 million in FY08.

Revenue for FY2009 decreased by 5.4% to $61.2 million from $64.7 million mainly due to the decrease in revenue derived from the Trading and Distribution business segment.

Revenue from the Design and Manufacture business segment increased by $0.2 million to $25.6 million in FY2009, mainly derived from the Malaysian market where customers switched over to the range of in-house brands of equipment parts which are more cost effective and of same quality as compared to the equipment parts offered under the Trading and Distribution segment.

Revenue from the Trading and Distribution segment decreased by $5.4 million to $31.2 million mainly due to lower revenue derived from Indonesia, China, Malaysia and India as a result of the global economic downturn.

However, the decrease was partially offset by an increase in revenue by $1.7 million or 65% from the vessel chartering business to $4.4 million in FY2009. This was due mainly to the revenue contribution from the first full 12 months of operation of the barge which started operation in May 2008. The vessel had also commenced operation in late December 2009.

The group’s gross profit for FY2009 decreased slightly by 3.9% to $18.9 million from $19.7 million in FY2008. Overall, the group’s gross profit margin for FY09 remained stable at 30.9% as compared to 30.4% in FY2008.