KUALA LUMPUR (Feb 28): Tan Chong Motor Holdings Bhd saw its fourth quarter ended Dec 31, 2016 (4QFY16) net profit shrink 73.87% to RM1.35 million from RM5.18 million a year ago.

Meanwhile, 4QFY16 revenue declined 15.7% to RM1.27 billion from RM1.51 billion previously.

It ended FY16 with a net loss of RM54.94 million against a net profit of RM74.87 million in the previous year after being negatively impacted by foreign exchange rates and weaker Malaysian ringgit.

The company said, in a bourse filing, FY16 revenue declined 3.6% to RM5.51 billion from RM5.72 billion in FY15 on the back of weaker consumer sentiment.

Performance by the Malaysian Nissan distributor weakened across all segments. Its automotive segment recorded lower revenue, with profit down by 58% year-on-year (y-o-y), and further impacted by higher imported complete knock down (CKD) cost compared to the previous year.

Profit for its financial services arm declined by 0.7% y-o-y despite a 16.4% increase in revenue, as higher purchase loans were offset by additional impairment loss on hire purchase receivables. Other operations also saw a slight decline in revenue and profit due to lower net revaluation gain from properties and assets, Tan Chong said.

Tan Chong expects businesses to remain under constant pressure in 2017.

"The domestic automotive industry outlook is expected to be subdued in 2017 as new vehicles sales remained weak due to poor consumers' sentiments and the continuing strict financing approval guidelines amidst the current economic condition," it said.

"The group remains committed to our roots in Malaysia while cultivating and branching out to the Indo-China emerging markets such as Cambodia, Laos, Vietnam and Myanmar to reap the future benefits of economic growth in these countries," the group added.

Shares of Tan Chong Motor slid by 0.6% or 1 sen to close at RM1.66 on Tuesday, giving it a market valuation of RM1.09 billion.