Tiong Nam sees higher demand for for logistics, warehousing services in FY23

KUALA LUMPUR: Tiong Nam Logistics Holdings Bhd is seeing higher demand for logistics and warehousing services for the financial year ending March 31, 2023 (FY23) on improving economic activity in Malaysia.

“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.

“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,” managing director Ong Yoong Nyock said in a statement.

The group is currently undertaking RM218.7mil capital expenditure (capex) across two years until FY24 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 sq ft from 6.9 million sq ft at present.

In the second quarter ended Sept 30, Tiong Nam posted a net profit of RM1.65mil, or earnings per share of 0.25 sen against RM254,000, or 0.05 sen posted in the same quarter last year.

Its revenue grew 7% to RM177mil from RM165.4mil previously, on new customer acquisitions and business expansions from existing customers.

For the first half ended Sept 30, Tiong Nam’s improved 6.8% to RM354.9mil from RM332.3mil in the previous period, while net profit to shareholders rose 12.7% to RM2mil from RM1.8mil previously.