Turbo-charged first half performance drives up earnings at Tan Chong International

Nissan and Subaru vehicle distributor Tan Chong International's half year net profit accelerated more than 2 1/2 times to HK$1.53 billion (S$250.4 million) from HK$415.5 million.

The turbo-charged performance was attributed to the following factors:

Profit margin improvement from our automotive businesses in Thailand, Malaysia, Taiwan, the Philippines and China;

A one-time capital compensation of HK$176 million for a change in the fundamental structure of business introduced by a principal; and

A revaluation gain on listed investment of HK$1.08 billion.

Revenue for the six months to June 30 soared by 53.4 per cent to HK$4.73 billion.

Tan Chong said the first half year witnessed the start of production of Subaru XV in Malaysia and active sales in Thailand, Malaysia and Indonesia.

Consequently. sales in these countries increased substantially.

Over in Taiwan and Philippines, sales saw a major improvement, while the China market recovered with strong sales momentum.

Earnings per share shot to 76.1 HK cents from 20.6 HK cents previously while net tangible assets per share grew to HK$5.25 compared to HK$4.66 as at Dec 31.

The company has declared an interim dividend of 2.5 HK cents, up from two HK cents a year ago.

Barring unforeseen circumstances, the group expects better revenue growth in the second half and financial performance is expected to be satisfactory.