Half-year profits up by 178% at Tan Chong International after belt-tightening

SINGAPORE - Singapore-listed automobile company Tan Chong International saw net profit jump 178 per cent to HK$330.3 million (S$57.8 million) in the first six months.

The stellar bottom line came despite a revenue decline of 9 per cent to HK$8.03 billion, on the back of a slowdown in vehicle sales volume.

The growth in profits was attributed to an improved operating profit margin as distribution costs and administrative expenses were cut.

The group also noted "healthy increases in other operating income".

Earnings per share stood at 16 Hong Kong cents, against six Hong Kong cents the previous year, while net asset value was HK$6.23 a share, up from HK$6.10 as at Dec 31, 2016.

An interim dividend of 2.5 Hong Kong cents a share has been declared, compared with two Hong Kong cents previously.

"The group will continue to focus on improving cost efficiencies, and has started to see visible results from its efforts," Tan Chong said.

It will also "persist on pursuing the development of necessary infrastructure and distribution networks to strengthen the group's foundation, while keeping close monitoring of the prevailing uncertainties in the Asian markets".