KUALA LUMPUR (Feb 28): Tan Chong Motor Holdings Bhd recorded a net profit of RM43.28 million for the fourth quarter ended Dec 31, 2021 (4QFY21), compared with a net loss of RM44.2 million in the immediate preceding quarter, following a higher revenue and earnings before interest, taxes, depreciation and amortisation (EBITDA).

Revenue surged 97.35% to RM866.92 million from RM439.27 million in 3QFY21, as business operations resumed after the easing of the Movement Control Order, the group said in a bourse filing.

EBITDA, meanwhile, soared 1,526% to RM103.1 million from RM6.34 million, according to its filing with the local bourse.

The automotive division reported a 101% jump in revenue to RM844.88 million, from RM420.77 million in 3QFY21. EBITDA improved 267% to RM58.77 million from RM16.02 million, mainly due to recovery in sales; favourable sales mix and lower operating expenses.

The financial services division’s revenue rose 16.1% to RM18.45 million from RM15.89 million. EBITDA stood at RM17.4 million due to the reversal of impairment loss on hire purchase receivables.

Revenue for other operations (investment and properties division) climbed 37.1% to RM3.59 million, from RM2.62 million. It recorded an EBITDA of RM26.92 million due to a net forex gain which arose from transactions and outstanding balances denominated in foreign currencies.

On a year-on-year basis, Tan Chong returned to the black from a net loss of RM69.62 million in 4QFY20. Revenue rose 15.91% from RM747.9 million.

For the full financial year, Tan Chong narrowed its cumulative net loss to RM15.4 million from RM165.58 million in FY20, mainly due to better sales mix, lower operating expenses, lower impairment on hire purchase receivables and higher unrealised forex gain.

Cumulative revenue fell 14.27% to RM2.54 billion, from RM2.96 billion because of the prolonged lockdown period.

Tan Chong said it will continue to take appropriate actions to stay competitive in the domestic, as well as the IndoChina markets, with new model launches in Malaysia and Vietnam expected to be the catalysts for sales growth in FY22.

“Barring any unforeseen circumstances, the group is cautiously optimistic of a better operational performance in 2022. The group’s overall balance sheet and business fundamentals remain strong and will continue to strengthen its core business operations.

“Moving ahead, the group will continue to raise its focus to drive digitalisation and further business improvement strategies to deliver operational and financial sustainability,” it added.

Tan Chong's shares rose one sen or 0.9% to RM1.12 on Monday (Feb 28), for a market capitalisation of RM752.64 million.