KUALA LUMPUR: Property developer Tanco Holdings Bhd (THB) posted a net profit of RM4.94 million for the third quarter (Q3) ended June 30, 2023 (FY23) compared to the net loss of RM4.07 million during the same period last year.
The company's revenue doubled more than sixfold to reach RM21.19 million in Q3 FY23 from RM3.14 million in the same quarter last year.
This increase was mainly due to the higher revenue generated by the property development and management and construction segments.
Executive director Christopher Tan Khoon Suan said this significant upturn is a testament to the company's concerted focus on enhancing revenue streams, particularly in property development and construction.
THB has made commendable strides in consolidating its financial position.
During the quarter, the company successfully reduced its debt, repaying a substantial bank borrowing of RM30.5 million.
This repayment will trim down financing costs and liberate assets previously held as security by the bank, further strengthening its balance sheet.
In addition to this, THB has also completed several strategic transactions that bolstered its property portfolio and operational efficiency.
Notably, it concluded the acquisition of a 50.1 per cent equity interest in Gplex Properties Sdn Bhd (GPSB).
Also, THB's subsidiary Tanco Builders Sdn Bhd had also accepted a letter of award from China Communications Construction (ECRL) Sdn Bhd for the subgrade works of the East Coast Rail Link Project.
"Our recent strategic transactions, including the acquisition of a significant stake in GPSB, reflects our commitment to a continuous growth journey, fostering portfolio diversification and operational efficiency.
"We believe that as strategic partners, the alignment of our interest and synergy generated from our collaboration will create long-term values," Tan said.
The positive earnings trend continued into the first nine months (9M) of FY23, with THB registering a net profit of RM15.44 million compared to a net loss of RM9.38 million in the previous year.
THB's 9M revenue saw a positive jump, increasing by approximately 15 times to RM72.22 million, up from RM4.84 million during the same period last year.
"Despite a challenging macroeconomic landscape, we are undeterred and executing our growth plans.
"We stand ready to seize these opportunities and continue our growth journey," Tan added.
While mindful of potential macroeconomic challenges, such as persistent inflation, tightening of monetary policies, geopolitical tensions, and fluctuating commodity prices, THB remains focused on its growth prospects for the remainder of 2023.