Tan Chong Motor recognises RM620.4m revaluation gain

by **Cals** Thu 27 Feb 2014, 10:07

Business & Markets 2014

Written by Charlotte Chong of theedgemalaysia.com

Thursday, 27 February 2014 09:46

KUALA LUMPUR: Tan Chong Motor Holdings Bhd (TCMH) has recognised a revaluation surplus of RM620.4 million from its property, plant and equipment and investment properties in Malaysia, Vietnam and Laos, following a revaluation exercise. This will be incorporated into the group’s financial statements for the financial year ended Dec 31, 2013 (FY13).

In a filing with Bursa Malaysia yesterday, the automobile distributor and manufacturer said the recognition of the revaluation surplus has resulted in an increase in net assets per share as at Dec 31, 2013 by 95 sen.

TCMH said the purpose of the valuation was to reflect the fair value of the properties in compliance with the approved accounting standards.

The valuation of the properties situated in Malaysia was conducted by Rahim & Co Chartered Surveyors Sdn Bhd, while that in Vietnam and Laos was conducted by Agency for Real Estate Affairs, it added.

In a separate filing, TCMH posted a record net profit of RM67.84 million in its fourth quarter ended Dec 31, 2013 (4QFY13), a 19% increase from RM57.22 million a year ago. Revenue for 4QFY13 rose 15% to RM1.35 billion from RM1.18 billion.

For the 12 months ended Dec 31, 2013, the group saw its net profit jump 52% to RM250.95 million from RM164.66 million the previous year.

Revenue rose 27% from RM4.09 billion in FY12 to RM5.2 billion, crossing the RM5 billion mark for the first time on the back of 51,491 units of Nissan sold which were 48% higher than 2012.

“With the highest sales volume reached, Nissan maintained its No 2 position in the non-national segment,” said TCMH.

For 2014, the group expects it to be a challenging year on several fronts, namely a weaker ringgit resulting in higher imported completely knocked-down costs, intense domestic competition, higher operating costs from marketing and administering a wider geographical footprint.

“Some consolidation and improvement measures for cost efficiency and productivity are necessary in our view after rapid growth to better place the group for its next leg of expansion,” said the TCMH.

This article first appeared in The Edge Financial Daily, on February 27, 2014.