Tiong Nam's net profit rises 130pct, revenue up 6.6pct
By NST Business - February 24, 2020 @ 7:40pm
KUALA LUMPUR: Tiong Nam Logistics Holdings Bhd posted a 130.8 per cent jump in net profit to RM1.8 million in the third quarter ended 31 December 2019 from RM0.8 million a year ago.
This was due to stronger performance at the property development segment, Tiong Nam said in a statement today.
Group revenue rose 6.6 per centto RM155.9 million compared to RM146.2 million previously. The bulk of it was contributed by the logistics and warehousing segment, which maintained at RM137.9 million durig the quarter.
However, the segment’s pre-tax profit declined 51.2 per cent to RM4.5 million from RM9.3 million due to higher depreciation and amortisation cost in line with its expanded facilities.
The property development segment revenue rose 80 per cent to RM13.8 million from RM7.7 million due to the sale of completed property units at the company’s SILC 7 project in Johor Bahru.
Tiong Nam said its hotel and dormitory segment consisting of Fraser Place Puteri Harbour registered revenue growth to RM4.1 million from RM0.6 million previously, and narrower pre-tax loss of RM2.0 million versus RM2.3 million pre-tax loss previously, in line with increasing occupancy.
“We will build on the increasing momentum of Fraser Place Puteri Harbour’s brand visibility and occupancy rate, so that our prime property in Johor Bahru will contribute positively towards operational profit,” managing director Ong Yoong Nyock said in the statement.
“At the same time, we will continue realising the value of our balance unsold property units which would complement future earnings,” he added.
For the nine months, revenue from the logistics and warehousing segment rose 2.6 per cent to RM416.1 million from RM405.6 million previouslym while pre-tax profit grew 6.1 per cent to RM19.2 million from RM18.1 million last year.
The property development segment saw its revenue decline 25.1 per cent to RM35.1 million in the nine months from RM46.8 million a year ago.