KUALA LUMPUR, Aug 14 — Tan Chong Motor Holdings Bhd returned to the black in the second quarter ended June 30, 2018, with a net profit of RM9.9 million from the previous corresponding quarter’s loss of RM26 million.
Revenue eased to RM1.08 billion versus RM1.19 billion recorded in the same quarter in 2017.
In its filing in Bursa Malaysia today, the Group said it recorded a higher number of vehicles sold and improvement in margins with a favourable sales mix.
On the current year’s prospects, Tan Chong said the domestic automotive sector is expected to remain challenging in a highly competitive market amid uncertainties due to changes in tax legislation vis-a-vis the reintroduction of the sales and services tax (SST).
The Group had launched new locally assembled models such as the all-new Nissan Serena S-Hybrid and Nissan Urvan NV350 to improve its competitiveness in the domestic market.
For overseas operations, the Group will continue to follow through on its business strategy of expansion of its sales and after-sales network into Cambodia, Laos, Myanmar and Vietnam.
As part of the long-term strategy to strengthen the Group’s position in the regional automotive sector, it will also expand into the commercial vehicle sector with a commercial vehicle plant in Vietnam. — Bernama
