KUALA LUMPUR: Tiong Nam Logistics Holdings Bhd posted a net profit of RM44.7 million in the third quarter (Q3) ended December 31, 2023 (FY24) compared to RM0.2 million in the same quarter last year, mainly
driven by fair value gain on investment properties.
The fair value gain on investment properties, amounting to RM69.0 million after tax, resulted from revaluating a warehouse asset in Senai Airport City.
Revenue maintained at RM188.9 million in Q3 FY24, increasing marginally from RM187.5 million a year ago.
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.
Managing director Ong Yoong Nyock said the resilient performance of its logistics and warehousing segment underscores the company’s commitment to client service.
“We reinforce our 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 supporting 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 in targeted expansions, and optimising operational efficiency, we are well-positioned to navigate the market
challenges and capitalise on emerging opportunities,” he said in a statement.
The company’s ongoing warehouse expansions encompass the construction of three new warehouses in Johor Bahru and Singapore, with a combined total capacity of 1.1 million sq ft, to be completed in the financial year ending March 31, 2025 (FY25).
Tiong Nam’s total warehousing capacity will reach 8.8 million sq ft in FY25 from 7.7 million sq ft in Q3 FY24.
Additionally, Tiong Nam plans to build five more warehouses with a total capacity of 1.2 million in Johor, Selangor, and Penang, to be completed in phases from FY26 until FY28.
Meanwhile, the company’s property development segment contributed RM4.2 million in revenue in Q3 FY24, up 221.0 per cent from RM1.3 million previously, on the back of contribution from the company’s residential development project in Kota Masai, Johor.
For the nine-month FY24, revenue rose 4.2 per cent to RM565.2 million from RM542.4 million a year ago.
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.
