Mainboard-listed Chasen Holdings announced on July 30 that it has secured a total value of $21 million in contracts through its specialist relocation and its technical & engineering (T&E) business segment.
Its specialist relocation segment has won contracts in China, Malaysia, and Singapore, while the T&E segment secured a steel fabrication cum installation project in Singapore.
The company says that it has continued to secure new projects for its core businesses in specialist relocation and third party logistics (3PL) due to the robustness of the manufacturing sectors related to semi-conductors, solar panels and TFT LCDs in Singapore, Malaysia, and China.
It adds that new developments in the operational requirements of manufacturers as a result of the volatile global market have merged both business segments.
Chasen’s China-based subsidiary Chasen (Chuzhou) Hi-Tech Machinery Services Pte Ltd will provide move-in services worth RMB50 minutes ($9.95 million) for a new 8.5th Generation TFT LCD manufacturing plant cum OLED R&D facility being established in Changsha, Hunan Province.
The revenue is expected to be earned over a 12- month period commencing in the last quarter of 2020.
In Malaysia, the company’s Penang-based subsidiary, Chasen Logistics Sdn Bhd will provide relocation services for a US MNC solar panel and a US semi-conductor manufacturing plant in Kulim Hi-Tech Park and Perai respectively. Both contracts are worth RM9.43 million ($3.08 million), and will run from July to March 2021.
In Singapore, Chasen’s pioneer relocation subsidiary, Chasen Logistics Services has secured several projects to provide move-in, crating and packing services, as well as crossborder services for locally-based MNCs worth a total of $2.96 million. The contracts will run from April to September.
Chasen’s T&E subsidiary Hup Lian Engineering has clinched a project for steel fabrication cum installation of solar panels worth $5 million.
Chasen says it expects these projects to have a positive financial impact from 2H20.
“While the business disruptions as a result of Covid-19 have not been easy on any of us, we remain committed to overcoming the adversity and will continue to secure new projects in our core, niche businesses in Specialist Relocation and cross-border land freight (3PL),” says Low Weng Fatt, managing director and CEO.
“Our unique position as a market leader in these sectors will enable the Group to draw in more business opportunities in the improving economic situation following the outbreak in the region. Despite the earlier shutdown of the local construction industry during the CB, our T&E segment has also proven itself to be resilient by securing such a sizeable project,” he adds.
As at 10.36am, shares in Chasen are changing hands flat at 5.8 cents.
