KUALA LUMPUR (May 23): Tan Chong Motor Holdings Bhd (KL:TCHONG) returned to the black in the first quarter ended March 31, 2025 (1QFY2025), posting a net profit of RM4.14 million compared with a net loss of RM15.72 million a year earlier, mainly due to recognition of a one-off fair value gain on investment properties of RM54 million.

However, this was partly offset by lower revenue, higher impairment loss on receivable and net foreign exchange loss of RM4.2 million in 1QFY2025 compared with a net foreign exchange gain of RM13 million recorded in 1QFY2024.

As a result, the group recorded an earnings per share of 0.63 sen in 1QFY2025 compared with a loss per share of 2.41 sen in 1QFY2024.

Revenue for the quarter slipped 1.9% to RM553 million in 1QFY2025 from RM563.7 million a year earlier, mainly due to softer consumer sentiments and a highly competitive business landscape in the local and overseas markets.

On a quarter-on-quarter basis, Tan Chong posted a net loss of RM214.17 million in 4QFY2024, while revenue was 8.2% higher than the RM511.2 million recorded in 4QFY2024.

In a filing with Bursa Malaysia on Friday, Tan Chong said the automotive division recorded earnings before interest, tax, depreciation and amortisation (Ebitda) of RM56.9 million in 1QFY2025, up 2,205.9% year-on-year, mainly due to recognition of the one-off fair value gain on investment properties of RM54 million and partly offset by lower revenue.

Stripping out the fair value gain on investment properties, the division recorded an underlying Ebitda of RM2.9 million in the current quarter.

On prospects, Tan Chong said the group continues to build on its recovery strategy in a challenging market environment. "The official launch of the Nissan Kicks e-POWER in December 2024 has started to generate positive traction in 1Q 2025," it added.

"We continue our efforts to streamline supply chain costs, enhance after-sales service capabilities, and upgrade customer-facing facilities. Investments in digital transformation and data-driven marketing are expected to improve customer engagement and retention," it said.

Tan Chong noted that regional expansion remains a strategic priority, with active exploration of new product opportunities in Cambodia, Laos, and Myanmar.

"The group also plans to deepen its manufacturing footprint to support upcoming model rollouts and regulatory compliance, particularly in the electric vehicle sector, as well as for export market opportunities. With a balanced focus on electrification, commercial fleet solutions, and operational agility, the group is well-positioned to navigate market challenges and sustain long-term growth across its diversified automotive portfolio."

Tan Chong shares closed unchanged at 46 sen on Friday, giving it a market capitalisation of RM306 million. The stock has risen 6.98% so far this year.