Tanco returns to the black with a net profit of RM11.87mil in Q2

NST Wed, Feb 22, 2023 03:06pm - 1 year View Original


KUALA LUMPUR: Tanco Holdings Bhd returned to the black with a net profit of RM11.87 million in the second quarter (Q2) ended December 31, 2022 (FY23) compared to a net loss of RM2.83 million on the back of higher revenue.

Revenue jumped more than 28 times to RM29.72 million from RM1.04 million in Q2 FY22 due to higher revenue generated from its property development and construction segment.

For the six-month period, the company posted a net profit of RM10.5 million from a net loss of RM5.31 million.

Revenue for the period stood at RM51.03 million versus RM1.71 million registered in the corresponding period the previous year.

Managing director Datuk Seri Andrew Tan Jun Suan said the company's defensive strategy had allowed it to emerge relatively unscathed from the pandemic despite the unprecedented challenges faced by the company.

"This has put the company in a good position to resume its property development and construction works swiftly and benefit from the resurgence of the economy.

"Going forward, we will leverage our unique positioning, project management capabilities and customer-centric approach to capitalise on the economy's resurgence.

"As we move forward in the post-Covid era, we believe it is the right time for us to expand and grow more aggressively," he said.

Tanco is in the midst of completing its property development project for the Block 2 Service suites in Splash Park, a development project in Dickson Bay that has a gross development value of RM147 million.

To date, about 70 per cent of the development has been sold.

Aside from that, Tanco also owned tracts of landbank for development, which will allow the company to expand aggressively.

As the landbanks are without any borrowings, this will be a boost to Tanco's profit margin from its upcoming property development project as the company does not need to service bank loans for all its development land, Tanco noted.

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