KUALA LUMPUR (Feb 24): Logistics and warehousing provider Tiong Nam Logistics Holdings Bhd more than doubled its net profit to RM1.78 million or 0.39 sen a share for the third quarter ended Dec 31, 2019 (3QFY2020) from RM772,000 or 0.16 sen a year ago, thanks to higher contribution from its property development and investment segments and lower direct operation expenses.

However, the gains were partly offset by higher depreciation and amortisation, finance costs, overhead costs and tax expenses, it said in a filing to Bursa Malaysia.

Revenue also rose 6.63% to RM155.89 million in 3QFY20 from RM146.19 million a year ago.

However, for the cumulative nine-month period (9MFY20), Tiong Nam’s net profit fell 43.71% to RM5.03 million from RM8.94 million a year ago despite revenue inching up 1.78% to RM461.46 million from RM453.39 million in 9MFY19, owing to higher depreciation and amortisation, finance costs and other overhead expenses.

Its core logistics and warehouse services segment’s profit before tax (PBT) for 9MFY20 rose 6.13% to RM19.21 million from RM18.10 million despite revenue declining 2.59% to RM416.08 million in 9MFY20.

Meanwhile, its property development segment posted a 19.2% higher PBT of RM1.4 million for the period from RM1.17 million a year ago despite revenue falling 25.07% to RM35.08 million in 9MFY20 from RM46.82 million a year ago.

Its investment segment posted PBT of RM868,000 versus loss before tax (LBT) of RM1.4 million a year ago, while revenue for 9MFY20 rose 53.42% to RM606,000 from RM395,000.

Meanwhile, its hotel and dormitory segment posted higher LBT of RM10.96 million from RM2.26 million despite revenue swelling more than 16 times to RM9.7 million compared with RM591,000 a year ago.

Tiong Nam said it will continue seeking new business opportunities and focus on operational efficiency and cost-control effectiveness.

“The property development and hotel and dormitory segments are expected to incur operating loss in financial year 2020,” it added.

Nonetheless, the group expects to deliver an operating profit for FY20.

Tiong Nam closed at 44 sen today, down 2 sen or 4.35%, giving it a market capitalisation of RM202.74 million. The counter saw some 116,000 shares traded.