PETALING JAYA: Tiong Nam Logistics Holdings BHd reported that its net profit attributable to shareholders in the first quarter ended June 30, 2024 (Q1’25) surged 370.5% to RM3.5 million from RM700,000 in the previous quarter, while revenue grew 3.8% to RM200.1 million from RM192.8 million previously.
The logistics and warehousing services segment’s revenue rose 12.9% to RM194.9 million from RM172.6 million previously, driven by increasing business from existing and new domestic and multinational customers. The segment contributes 97.4% of the group’s total revenue.
The segment’s profit before tax recorded a turnaround to RM8.8 million in Q1’25 from a loss before tax of RM3.8 million previously, attributed to increased business activity, and rental income from the long-term lease of a warehouse to Mercedes-Benz Parts Logistics Asia Pacific.
To meet escalating demand for integrated logistics solutions, Tiong Nam is investing an estimated RM460 million in capital expenditure (capex) over the next two financial years. The majority of the capex will be utilised for the ongoing construction of four warehouses in Johor, Kedah, Sabah and Singapore. These warehouses, with a total capacity of 1.3 million square feet (sq ft), are expected to be operational in stages between FY25 and FY26.
The capex also includes planned expansions for three additional warehouses in Johor and Selangor, with a total capacity of 600,000 sq ft. Construction of the expansions is set to commence in FY25, and will be completed in phases until FY26.
The ongoing and planning expansions will boost Tiong Nam’s total warehousing capacity by 26% to 9.7 million sq ft in FY26 from its current level of 7.7 million sq ft.
Managing director Ong Yoong Nyock said: “Our strong first-quarter results demonstrate the resilience of our logistics and warehousing operations and the success of our focus on operational efficiency. Our ongoing warehouse expansions, with new facilities coming online in key regions and secured tenants, allow us to effectively meet our clients’ growing requirements. We are optimistic of achieving at least a 30% increase in revenue for our logistics and warehousing segment in FY2025, driven by increased business activity and contribution from our expanding infrastructure.”
Source: The Sun Daily
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