Tiong Nam's Q3 net profit surges to nearly RM45mil

NST Mon, Feb 26, 2024 05:49pm - 3 months View Original

KUALA LUMPUR: Tiong Nam Logistics Holdings Bhd's net profit surged to RM44.7 million in the third quarter (Q3) ended Dec 31, 2023 from RM194,000 last year driven by fair value gain on investment properties.

Group revenue stood at RM188.9 million, increasing marginally from RM187.5 million a year ago.

Tiong Nam said the logistics and warehousing segment, its key revenue contributor, registered stable revenue of RM183.7 million in Q3 FY24 versus RM185.4 million previously on resilient demand across diverse industries.

For the nine-month period (9M24), Tiong Nam's net profit improved to RM46.7 million compared to RM2.2 million previously, on the back of the fair value gains from investment properties comprising a warehouse asset.

Its revenue rose 4.2 per cent to RM565.2 million in 9M24 from RM542.4 million a year ago. 

Managing director Ong Yoong Nyock said the resilient performance of its logistics and warehousing segment underscores the company's commitment to exceptional client service. 

Ong said the company is reinforcing its position as a leading total logistics solutions provider in Southeast Asia, facilitating stable and efficient supply chains for domestic and multinational enterprises.

"Our ongoing construction of new warehouses and planned expansions cater to growing client demand and support future revenue growth. 

"These initiatives will enhance our capacity to meet the needs of our clients and provide greater operational control, while mitigating long term rental costs.

"By prioritising client satisfaction, investing into targeted expansions, and optimizing operational efficiency, we are well-positioned to navigate market challenges and capitalise on emerging opportunities," he said. 

Tiong Nam's ongoing warehouse expansion encompasses the construction of three new warehouses in Johor Bahru and Singapore will be completed in FY25. 

This will see the company's total warehousing capacity reach 8.8 million square feet in FY25 from 7.7 million square feet in Q3 FY24.

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