KUALA LUMPUR (Aug 26): Tiong Nam Logistics Holdings Bhd's net profit for its first quarter ended June 30, 2019, dropped 60% to RM1.94 million, from RM4.86 million in the previous year's corresponding quarter, amid losses in the hotel and dormitory segments.

The logistics and property player posted a 3% decline in its quarterly revenue to RM150.03 million from RM155.15 million a year earlier.

The property development segment was a drag on revenue, given the 75% year-on-year decline in contribution to RM6.2 million, which was attributed to the challenging environment in the property market.

Meanwhile, the logistics and warehousing services segment saw a 9% increase in revenue to RM141.6 million, from RM129.7 million in the previous year, supported by the securing of new total logistics customers as well as increase in business activities with existing customers.

"The global and regional economic climate in financial year 2020 is expected to remain challenging to our core business, logistics & warehousing services segment. The group is cognizant of the industry development and understands that maintaining the group's market share is paramount to our long-term sustainability," it said.

Tiong Nam said it will continue to strengthen its core competencies and step up efforts in clientele development and service innovation.

The group will continue to seek out new business opportunities and remain focused on operational efficiency and cost control, amid the competitive environment.

However, it expects the hotel and dormitory segments to remain loss making in its current financial year.

Tiong Nam's share price fell 1 sen or 1.94% to close at 50.5 sen, giving a market capitalisation of RM232.69 million.