Logistics player Chasen Holdings has reported net profit after tax (NPAT) of $1.61 million for the 1QFY2022 ended June, 526% higher than NPAT of $257,000 from the same period a year ago.
According to the Mainboard-listed company’s business update, net profit attributable to shareholders – or earnings – stood at $1.0 million for the 1QFY2022.
Profit before tax (PBT) rose 466% y-o-y – or 5.65 times – to $2.2 million from $381,000 from a year ago.
Earnings per share (EPS) for the 1QFY2022 stood at 0.263 cents on a fully diluted basis, from loss per share of 0.023 cents in the 1QFY2021.
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The higher figures were due to a recovery in business from the initial disruption of the Covid-19 pandemic as well as the resumption of projects and new contract wins, particularly in the Specialist Relocation and Technical & Engineering (T&E) segments.
Revenue for the 1QFY2022 grew 70% y-o-y to $42.3 million due to broad-based growth in sales from all three of the company’s segments, including Third-Party Logistics (3PL).
The 3PL segment increased its contribution to the company’s overall revenue due to demand for cross-border land transportation amid continued disruptions to air and sea transportation.
Over half of Chasen’s customers have indicated that they intend to use cross-border land transportation as their primary mode of moving cargo going forward despite the easing challenges faced by air and sea freight operators.
The company has also seen sustained growth for its warehousing services amid increased e-commerce activities due to the lockdown during the pandemic.
Gross profit for the period stood 125% y-o-y higher at $7.6 million.
Gross profit margin (GPM) stood 4.4 percentage points higher at 18.0% from 13.6%.
The company says it is also benefitting from cost restructuring and streamlining of operations that began during the pandemic, even as Covid-19 related government grants taper off.
Looking ahead, Chasen says it is “ahead of schedule” in growing its truck fleet across Malaysia, Thailand and Indo-China from its base of 120 trucks.
The 3PL segment is also looking for additional warehouse space to fulfil the strong demand in response to the demand in e-commerce.
Specialist Relocation projects have resumed on the back of recovering manufacturing activity in China.
While the TFT LCD market in maturing, Chasen says it is well-positioned to seize the emergence of OLED and market share growth for display panels with its first mover advantage.
Chasen’s T&E segment is on schedule to complete its installation works on solar panels on over 50 HDB blocks “in the next two to three quarters”.
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The company adds that it remains “cautiously optimistic” amid new Covid-19 strains.
“We have delivered a good set of results this quarter, and expect business momentum to continue improving in the coming months,” says Low Weng Fatt, managing director and CEO of Chasen.
“With continued focus on our cost restructuring efforts, we hope to incrementally scale activities on a leaner cost structure to improve our cost competitiveness and bottom line. Management is closely monitoring the evolving landscapes related to regional economic activities as impacted by the pace of vaccination and Covid-19 control measures, and remains committed to adding value to our customers and shareholders,” he adds.
Shares in Chasen closed 0.1 cent higher or 1.5% up at 6.8 cents on Aug 6.
Photo: Unsplash
