TIONG Nam Logistics Holdings Bhd allocated RM200 mil in capital expenditure (capex) to expand its logistics and warehousing services division to cater to increasing demand in Malaysia and Southeast Asia.
In a company press statement on Sept 26, it was mentioned that 90% of the capex will be allocated for the construction of a new 190,000 sq ft warehouse in Senoko (Singapore), in addition to another two warehouses to be located in Pasir Gudang and Kempas (Johor), which are currently in planning stages.
The three warehouses are expected to be completed in the financial year ending Mar 31, 2022 (FY22).
The remaining 10% will be slated for two smaller warehouses and related supporting buildings to be situated in Johor as well as new trucks for the logistics business, which are also expected to be incurred in FY22.
“Together with existing warehouses in Malaysia, Singapore, Thailand and Laos, the new warehouses would increase the group’s total warehousing capacity by more than 10% to exceed 6 million sq ft from the previous 5.6 million sq ft,” the company said in the statement.
Meanwhile, the group’s logistics and warehousing services segment saw revenue increase 1.5% to RM547.7 mil in the preceding financial year ended Mar 31, 2020 (FY20), driven by the addition of new total logistics customers in addition to growth in demand for deliveries and warehousing from existing customer.
“Covid-19 clearly showed that our services are deemed essential to diverse industries including the food and beverage, fast moving consumer goods as well as electrical and electronics sectors,” Ting Nam Logistics Holdings Bhd managing director Ong Yoong Nyock said.
“This has helped us achieve high utilisation rates of 80% on average for our 83 warehousing facilities in Malaysia and regionally,” he added.’
As of 2.44pmm today, the share price for Tiong Nam Logistics Holdings Bhd stood at 39 sen with a market capitalisation of RM179.7 mil. – Sept 30, 2020
