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Tuesday, February 23, 2016

Tiong Nam's 3Q net profit more than doubles to RM22.08m

KUALA LUMPUR (Feb 22): Tiong Nam Logistics Holdings Bhd posted a net profit of RM22.08 million or 5.3 sen a share for the third quarter ended Dec 31, 2015 (3QFY16), 2.4 times or 136.7% higher compared to RM9.33 million or 2.22 sen a share a year ago, largely contributed by its logistics and warehouse services, as well as the property development segment.

In a filing with Bursa Malaysia today, Tiong Nam said that revenue for the period was 19.3% higher at RM173.89 million from RM145.7 million a year ago.

"Logistics and warehousing services revenue increased 11.8% to RM119.4 million compared to RM106.8 million in 3QFY15, mainly due to securing of new total logistics customers as well as business expansion from existing customers," the logistics player said in its filing.

Revenue for property development, meanwhile, increased by 40.8% to RM54.5 million for the quarter from RM38.7 million, as it secured new sales on completed projects, as well as smooth construction progress for ongoing projects.

For the nine-month period (9MFY16), net profit rose 15.3% to RM43.06 million or 10.34 sen a share from RM37.33 million or 8.87 sen a share a year ago, while revenue increased 4.6% to RM446.7 million from RM427.2 million in 9MFY15.

Moving forward, the group expects the global and regional economic climate in 2016 to be challenging to its core business segment.

"The group will continue seeking new business opportunities, focus on operational efficiency and cost control effectiveness to better contend with competition," Tiong Nam said.

It added that the property development segment is expected to contribute positively to the group for the remaining FY16.

Tiong Nam shares closed 1 sen or 0.81% higher at RM1.25 with 900,500 shares traded. It has a market capitalisation of RM521 million.

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