KUALA LUMPUR (Nov 23): Tiong Nam Logistics Holdings Bhd returned to the black with a net profit of RM3.69 million in its second quarter ended Sept 30, 2020, from a net loss of RM5.53 million in the preceding quarter.

Revenue increased 21.19% quarter-on-quarter to RM149.05 million from RM122.99 million, according to the group’s filing with the stock exchange.  

Tiong Nam said the better results was mainly supported by an improved performance in its core logistics and warehousing services segment, which saw revenue rising 21.7% to RM146.81 million, from RM120.6 million in the preceding quarter.

This was due to higher sales during the recovery movement control order period from June 10. Profit before tax also ballooned to RM14.33 million from RM2.85 million.

Meanwhile, Tiong Nam’s net profit was also sharply higher, compared with the RM1.31 million reported in the same quarter of last year, also due to the logistics and warehousing services segment’s stronger performance.

Revenue, however, fell slightly year-on-year to RM155.54 million.

For the cumulative six months ended Sept 30, Tiong Nam posted a net loss of RM1.84 million, compared with a net profit of RM3.25 million in the previous corresponding period.

Revenue during the period fell 10.98% to RM272.04 million, from RM305.57 million previously.

On prospects, the group said the logistics and warehousing services segment is expected to be affected by the slow down due to the Covid-19 pandemic.

“However, the group will continue to strategise to maintain our market shares, focus on operational efficiency, cost control (and) service innovation to sustain its core logistics & warehousing business over the long term,” it said.

For the property development and hotel & dormitory segments, the group expects to see operating losses for the current financial year ending March 31, 2021.

For the six-month period, the property development segment recorded a loss before tax of RM8.68 million versus a profit before tax of RM182,000 a year ago, while the hotel & dormitory segment’s net loss widened to RM10.19 million, from RM8.98 million.

Tiong Nam’s share price, which was trading at 39 sen in early October, closed up eight sen or 11.76% at 76 sen today, bringing a market capitalisation of RM339.72 million.

Some 86.47 million shares were traded, which is significantly higher than its 200-day average of 2.91 million shares.