The logistics player is seeing higher demand for logistics and warehousing services for the financial year ending 31 March 2023 (FY2023) on improving economic activity in Malaysia.
The Group’s logistics and warehousing services segment recorded 7.7% growth in revenue to RM175.6 million in the second quarter ended 30 September 2022 (2Q FY2023) from RM163.1 million previously, on new customer acquisitions and business expansions from existing customers.
Tiong Nam is the largest land logistics and warehousing services provider in Malaysia, serving a wide range of industries including Food and Beverage, Information Technology, Electrical and Electronics, Oil and Gas, Automotive, Telecommunications, and others.
“Demand for our logistics and warehousing segment is poised to further increase on Malaysia’s economic recovery, alongside stable uptrend from domestic and multinational corporations (MNC). With this, we expect to maintain our growth pace going forward,” Ong Yoong Nyock, Managing Director of Tiong Nam Logistics said.
“We are in the midst of expanding warehousing capacity to support current customers’
expansions and onboard new customers. We are also on track to see our MNC revenue
contribution increase to 45% in 2025 from about 35% in 2022, as businesses increasingly
invest in Southeast Asia for greater supply chain resilience,” he added.
The Group is currently undertaking RM218.7 million capital expenditure (CAPEX) across two years until the financial year ending 31 March 2024 to expand its logistics and warehouse network. The CAPEX involves building new warehouses in Kedah and Johor, which will increase its warehousing capacity in Malaysia, Singapore, Thailand and Laos to 7.9 million square feet (sq. ft.) from 6.9 million sq. ft. at present.
Meanwhile, the property development segment’s revenue was flat at RM0.5 million in 2Q FY2023 versus RM0.4 million previously. The Group recorded a decline in revenue contribution from the dormitory segment by 92.8% to RM0.1 million from RM1.8 million in the previous year, due to the deconsolidation of Terminal Perintis.
Overall, group revenue amounted to RM177.0 million in 2Q FY2023 compared to RM165.4 million in the previous year, while net profit to shareholders rose to RM1.7 million from RM0.3 million.
For the first half ended 30 September 2022 (1H FY2023), group revenue improved 6.8% to RM354.9 million from RM332.3 million in the previous period, while net profit to shareholders rose 12.7% to RM2.0 million from RM1.8 million previously.
“In addition to increasing logistics and warehousing activity, Tiong Nam is well-positioned to benefit from the proposed development of a high-tech logistics hub on a 300-acre plot of land in Sedenak Tech Valley, Johor, through our preliminary collaboration agreement with JLand Group Sdn Bhd,” Ong said.
“We look forward to formalising a joint venture with JLand in the near future, and are excited to jointly undertake the development which will focus on driving greater connectivity in regional and international trade, and increase the logistical efficiency and productivity of the state of Johor.”
