Tan Chong Motor posts the second consecutive profitable quarter in 2022

Tan Chong Motor posts the second consecutive profitable quarter in 2022
-A +A

KUALA LUMPUR (Nov 22): Tan Chong Motor Holdings Bhd posted a net profit of RM6.88 million or 1.05 sen per share in the third quarter ended Sept 30, 2022 (3QFY22), versus a net loss of RM44.20 million or 6.78 sen per share a year ago. 

The Nissan vehicle franchise holder said sales were comparatively higher than a year ago, when operations were disrupted by Covid-19 lockdown. 

The group declared an interim dividend of 1.5 sen per share with ex-date on Dec 8. 

Revenue was 66% higher at RM729.87 million for 3QFY22, from RM439.27 million in 3QFY21, said Tan Chong in a stock exchange filing on Tuesday (Nov 22). 

These financial improvements helped narrow the group’s net loss for the first nine months of 2022 (9MFY22) to RM6.40 million, from RM58.68 million in the previous corresponding period, thanks to a 38% growth in revenue to RM2.31 billion, from RM1.67 billion. 

Tan Chong said demand for its popular models remains “very encouraging”, but sales momentum is being dampened by shortage of stock supply, which is expected to improve next year.   

Going forward, the group pledged to take proactive measures to counter adverse impacts arising from new Covid-19 variants, higher interest rates, stronger US dollar, rising material costs, and supply chain disruption.   

Shares of Tan Chong closed unchanged at RM1.12 per share on Tuesday, giving it a market capitalisation of RM752.64 million. 

Isabelle Francis