KUALA LUMPUR (May 18): Tan Chong Motor Holdings Bhd has reported a net profit of RM4.25 million for its first quarter ended March 31, 2018 (1QFY18), from a net loss of RM35.32 million in the correponding period last year, owing to reduced net debt.

Its earnings per share improved to 0.65 sen per share, versus a loss per share of 5.41 sen a year ago.

TCM’s revenue improved by 4% to RM1.03 billion, from RM995.65 million in 1QFY17.

In a Bursa Malaysia filing today, the group said the automotive division recorded higher revenue in the quarter, as more vehicles were sold during the period, backed by promotion campaigns.

The hire purchase and insurance segment also achieved a higher revenue, as its improved loan book size was sustained as at March 31, 2018, compared with the previous year.

Looking ahead, the group expects the automotive sector to remain challenging in a highly competitive market.

Nonetheless, the group will strive to improve its competitiveness in the domestic market, with the launch of new models such as the all-new Nissan Serena S-Hybrid, and locally assembled all-new UD Trucks Croner, backed by a strong nationwide network of sales branches and after-sales services too.

As for the group’s overseas operations, it will continue to follow through on its business strategy for expansion of its sales network into Cambodia, Laos, Myanmar and Vietnam. It has two automotive assembly plants in Vietnam and Myanmar.

Tan Chong Motor closed unchanged today at RM1.67, for a market capitalisation of RM1.09 billion.