KUALA LUMPUR (May 24): Tan Chong Motor Holdings Bhd returned to the black with a net profit of RM7.74 million for the first quarter ended March 31, 2021 (1QFY21) from a net loss of RM9.26 million a year ago, despite lower revenue recorded.

Before this, the group had been loss-making for six consecutive quarters since 3QFY19.

The improvement came amid a better sales mix that resulted in better earnings margin, lower operating expenses, reversal of impairment on hire purchase receivables and an unrealised foreign exchange gain during the current quarter under review, according to the Bursa Malaysia filing of the sole distributor of Nissan vehicles in Malaysia.

Its quarterly revenue fell 19.23% to RM593.08 million from RM734.29 million. Its latest quarterly revenue is also down 20.7% from the RM747.9 million it achieved in the immediate preceding quarter of 4QFY20, when it recorded a net loss of RM69.63 million — mainly due to the impact of settling some bills of demand from the Royal Malaysian Customs Department.

On prospects, the company said it has continued to introduce new models to excite the market and remain competitive.

It noted that all new models launched so far have been well received in their respective markets. Further, it will continue to take appropriate actions to penetrate the domestic and regional markets with other new product launches, moving forward.

It also said it will continue to monitor the development in Myanmar closely and navigate through the challenges present by adjusting its business recovery plan accordingly to minimise the impact to the company.

Tan Chong Motor shares closed one sen or 0.88% higher to settle at RM1.14 today, for a market capitalisation of RM766 million.