KUALA LUMPUR (May 4): Tan Chong Motor Holdings Bhd, the sole distributor of Nissan vehicles in Malaysia, saw its net loss narrow to RM35.32 million or 5.41 sen a share in the first quarter ended March 31, 2017 (1QFY17), from RM37.21 million or 5.7 sen a share a year ago, due to softer demand for new vehicles.
Quarterly revenue fell 29.7% to RM995.65 million, from RM1.42 billion in 1QFY16.
In a filing with Bursa Malaysia today, Tan Chong Motor said its automotive division posted a 30.2% decline in revenue to RM976.6 million in 1QFY17, which dragged the segment's earnings before interest, tax, depreciation and amortisation (ebitda) down 21.3% to RM10.6 million.
"The lower revenue was due to the overall weak consumer demand and consequently, the lower ebitda," it added.
"We believe the domestic auto sector will remain challenging, as consumer appetite is still weak with the strict financing approval guidelines in the current economic environment," said Tan Chong Motor.
It added that the group will continue to remain disciplined and maintain their focus on key priorities to ensure sustainable financial position.
"Sales and marketing activities will be enhanced to maintain our competitiveness in Malaysia. Overseas sales and distribution are expected to continue expanding in tandem with the robust economic growth in Vietnam, Laos, Cambodia and Myanmar.
"However, our Myanmar operations commenced production and sales activities in 1QFY17," it added.
Tan Chong Motor shares closed down one sen or 0.52% to RM1.90 today, for a market capitalisation of RM1.25 billion.