KUALA LUMPUR (Aug 27): Tanco Holdings Bhd (KL:TANCO) posted its first quarterly loss in four years, hurt by a sharp increase in administrative expenses.

Administrative expenses more than doubled to RM8.53 million, up 154% from RM3.36 million a year earlier.

The property developer reported a net loss of RM3.35 million for the fourth quarter ended June 30, 2026 (4QFY2026), compared with a net profit of RM4.86 million a year earlier, according to an exchange filing on Thursday. Loss per share was 0.06 sen versus earnings per share of 0.09 sen.

On a quarterly basis, Tanco posted a net profit of RM119,000 in 3QFY2026.

Quarterly revenue rose 19.5% to RM38.76 million from RM32.44 million a year earlier, supported by higher construction activity, as well as increased contributions from building-materials trading and hotel operations.

No dividend was declared for the quarter.

For the full year ended June 30, 2026 (FY2026), net profit plunged 88.6% to RM895,000 from RM7.88 million in the previous financial year, despite revenue rising 25.2% to RM160.81 million from RM128.46 million. Tanco attributed the decline mainly to lower margins from its Rumah Selangorku affordable housing projects and building materials trading.

On its outlook, Tanco said its construction segment is progressing with the Rumah Selangorku project in Puchong and subgrade works for the East Coast Rail Link.

Its property development pipeline includes the Xanadu Millennium twin-tower project in Puchong, which has an estimated gross development value of RM700 million. The group said sales and promotional activities began after the sales gallery was launched in July, with construction preparations underway.

Tanco added that the hospitality segment, which operates Quest Hotel at Midport in Port Dickson, recorded improved revenue and operating performance during the period. It expects tourism-related activity to provide further support, including Visit Malaysia 2026.

For its planned Midport Smart AI Container Port in Port Dickson, Tanco said planning permission and building plan approval had been obtained. The project’s commercial structure has been revised to a port development concession model, while the group has begun groundwork and appointed a contractor to supply armour rocks for reclamation works.

“Overall, the group remains cautiously optimistic about its prospects for the year ended 2026, while recognising the continued uncertainties arising from inflationary pressures, operating costs and prevailing market conditions,” said Tanco.

Tanco shares closed down one sen or 4.7% at 20.5 sen on Thursday, valuing the group at RM1.26 billion. The stock has tumbled 82.6% so far this year after suffering consecutive limit-down sessions in June.