KUALA LUMPUR (Aug 29): Tan Chong Motor Holdings Bhd posted a net profit of RM6.24 million or 0.96 sen per share in the second quarter ended June 30, 2022 (2QFY22) compared to a net loss of RM22.21 million or 3.41 sen per share a year earlier, on improvement in its operating profit as well as cash flow hedge.

Quarterly revenue grew 27.62% to RM814.28 million from RM638.03 million driven by its automotive division which recorded higher revenue of RM794.4 million, the group said in a bourse filing.

On a quarter-on-quarter basis, Tan Chong also returned to black from a net loss of RM19.52 million in 1QFY22 as revenue increased 5.85% from RM769.3 million.

For the first six months of FY22, Tan Chong’s net loss narrowed to RM13.28 million from RM14.48 million in the same period last year, as revenue climbed 28.63% to RM1.58 billion from RM1.23 billion.

Looking ahead, Tan Chong said it will work towards fulfilling the outstanding bookings received before the sales tax exemption period which ended on June 30 for the remainder of the year.

The group said the demand for MG cars in Vietnam remains strong, mainly driven by the new MG5 model and the popular B-segment sports utility vehicle MG ZS.

It added that it will continue to take appropriate action to stay competitive in the markets it operates in, with new model launches in Malaysia and Vietnam expected to be the catalysts for sales growth.

“The focus will be on driving productivity improvement and exercising stringent controls in cost and cash management in navigating the headwinds.

“These prudent resource management principles will cushion the negative impact arising from the strengthening of the US dollar, stock shortages arising from global supply chain disruptions, rising material and interest costs,” it said.

Tan Chong’s share price settled one sen or 0.88% lower at RM1.13, bringing the group a market capitalization of RM759.4 million.