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- Quarterly revenue rose 4.6% year-on-year to RM184.94 million from RM176.81 million, on higher contributions from the group's logistics and warehousing services segment, as well as property development.
KUALA LUMPUR (May 30): Tiong Nam Logistics Holdings Bhd’s net profit jumped by over 11 times to RM27.1 million for the fourth quarter ended March 31, 2023 (4QFY2023), from RM2.34 million a year ago, due to a fair value gain on a warehouse investment property, firm demand for logistics and warehousing services and lower share of associate loss.
Earnings per share came in higher at 5.27 sen versus 0.45 sen a year prior, the integrated logistics services provider's bourse filing showed.
Quarterly revenue rose 4.6% year-on-year to RM184.94 million from RM176.81 million, on higher contributions from the group's logistics and warehousing services segment, as well as property development.
For the full year, Tiong Nam's net profit ballooned to RM29.33 million, from RM5.2 million in FY2022. Cumulative revenue grew 5.44% to RM727.33 million from RM689.83 million, mainly due to higher contributions from the logistics and warehousing services segment, coupled with lower share of loss from its associate.
Moving forward, Tiong Nam managing director Ong Yoong Nyock said that the group will continue to expand its warehousing capacity to capture business opportunities on the back of an improving domestic economy.
“Mindful of market challenges of higher inflation and interest rates, we will also focus on strategic initiatives such as maintaining market share and improving efficiency.
“Furthermore, we are fostering service innovation in our integrated logistics and warehousing services business to meet dynamic business requirements,” Ong said in a statement.
He said the group is committed to reinforcing its position of total logistics solutions in Southeast Asia, supporting efficient supply chains of domestic and multinational companies.
Tiong Nam said it is on track to complete its new 1.1 million sq feet of RM200 million mega-warehouse facility for lease to Mercedes-Benz in Senai, Johor. The warehouse is currently over 90% completed, and is expected to be operational in November and generate long-term recurring income.
The group is also constructing three new warehouses and planning another six across Johor, Selangor, Penang and Kedah. Upon completion, the group’s warehousing capacity will increase to 7.9 million sq ft in FY2024, from 6.8 million sq ft.
Meanwhile, the group's joint venture with Johor Corp — entered in August 2022 — to build and co-develop a 300-acre state-of-the-art, high-tech logistics park in Sedenak Technology Valley, Johor, is currently under planning stages.
