Friday 29 Mar 2024
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KUALA LUMPUR (Aug 24): Tiong Nam Logistics Holdings Bhd posted a net loss of RM5.53 million for its first quarter ended June 30, 2020 (1QFY21), 28% wider than the preceding quarter's net loss of RM4.32 million.

The group posted a net profit of RM1.94 million net for 1QFY20.

In a filing with Bursa Malaysia, Tiong Nam said quarterly revenue fell 18.02% to RM122.99 million, from RM150.03 million a year earlier, due to the Movement Control Order (MCO) which spanned the period under review.

The group said its core logistics and warehousing services segment saw a 64.71% plunge in profit before tax to RM2.85 million, from RM8.06 million a year ago, on lower sales.

Meanwhile, the group's property development and hotel and dormitory operations also recorded losses.

Looking ahead, Tiong Nam forecasts an adverse economic climate for 2020 and 2021, and hence expects its logistics and warehousing arm to be affected by the slowdown.

Additionally, the group expects its property development and hotel and dormitory segments to incur operating losses in this financial year.

"However, the group will continue to strategise to maintain our market shares, focus on operational efficiency, cost control, service innovation to sustain the core logistics and warehousing business over the long term," it said.

Tiong Nam's shares closed unchanged today at 40 sen, valuing the group at RM178.8 million. Around 160,200 shares were transacted.

The counter has declined over 20% year-to-date.

Edited by S Kanagaraju

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