KUALA LUMPUR (Nov 12): Logistics and warehousing services provider Tiong Nam Logistics Holdings Bhd (KL:TNLOGIS) has declared a share dividend to reward its shareholders, on the basis of one treasury share for every 40 existing shares held.

The share dividend will involve the distribution of up to 12.9 million treasury shares to all shareholders of Tiong Nam. The ex-date for the dividend is Nov 26, and the shares will be credited on Dec 18.

“The share dividend distribution allows us to reward our loyal shareholders and provide greater participation in Tiong Nam’s future growth," said Tiong Nam managing director Ong Yoong Nyock in a statement on Tuesday.

"We are enhancing our logistics and warehousing infrastructure across Malaysia and Singapore to meet the rising demand for integrated logistics solutions. As we aim for significant revenue growth for this segment in FY2025, our ongoing expansions will boost our capacity to better serve our customers and capture new opportunities.

"We are also further developing our land bank through our property development segment. These initiatives will contribute to long-term value to our shareholders," he added.

Tiong Nam is undertaking a capital expenditure of some RM460 million over the next two financial years ending March 31, 2025 (FY2025) and 2026 (FY2026), primarily for warehouse expansions. As at end-June 2024, the group is constructing four new warehouses in Johor Bahru, Kedah, Sabah and Singapore, with total capacity of 1.3 million sq ft, to be operational in stages between FY2025 and FY2026.

Additionally, Tiong Nam plans to build four more warehouses in Johor Bahru, Selangor and Kedah, with a total capacity of 700,000 sq ft. Construction of these warehouses is expected to commence in FY2025 and be completed in phases until FY2026. The ongoing and planned expansions will boost Tiong Nam’s total warehousing capacity by 26% to 9.7 million sq ft in FY2026, from 7.7 million sq ft as at June 30, 2024.

Tiong Nam shares closed unchanged at 71 sen apiece on Tuesday, giving it a market capitalisation of RM372.2 million. The stock mostly traded flat so far this year, rising by a marginal 1.43%.