Tiong Nam profit higher on improved revenue

PETALING JAYA: Logistics and warehousing provider Tiong Nam Logistics Holdings Bhd reported a net profit of RM38.4mil for its fourth quarter ended March 31, 5% higher than the net profit of RM36.6mil for the same period a year earlier on improved revenue across its segments.

Revenue for the quarter under review stood at RM163.9mil against a revenue of RM126.1mil earlier.

The company proposed a final single-tier dividend of 2 sen per ordinary share and a share dividend distribution of approximately 8.59 million treasury shares on the basis of 1 treasury share for every 50 existing ordinary shares.

Based on the treasury shares book cost, the share dividend is equivalent to 2.84 sen per share.

For the financial year ended March 31, Tiong Nam made a net profit of RM82.1mil against a net profit of RM77.1mil a year earlier while revenue stood at RM575.6mil compared with RM568.5mil in 2016.

In a filing to Bursa Malaysia, the company said its property development revenue drove the increase in overall revenue for the quarter.

Property development revenue increased by 65.1% to RM42.1mil compared to RM25.5mil for the preceding year corresponding quarter mainly due to its construction progress for one of its flagship projects, it said.

In a separate press release, the company said it was “forging ahead in its expansion plan to establish a cross-border logistics and warehousing network spanning from China to South-East Asia.”

“The plan is to capture new opportunities as regional trade and e-commerce activity continues to grow,” it said.

Managing director Ong Yoong Nyock said: “With ever-increasing cross-border trade between China and South-East Asian countries, coupled with the advent of e-commerce activities, we anticipate greater demand for cost-effective and reliable trucking and warehousing services going forward.”

Tiong Nam is targeting revenue from its cross-border services to contribute more than 10% to the group’s logistics and warehousing segment in the next three years, and would continue to explore new capital expenditure plans to strengthen its cross-border network, the company added.