Tan Chong International reports record sales, with near doubling of profit

Motor distributor Tan Chong International has posted a 91 per cent rise in net profit to HK$2.06 billion (S$329.2 million).

Contribution to consolidated profit derived from an increase in fair values of listed securities amounted to HK$1.4 billion. Thus, a significant portion of profit was obtained from investments.

Revenue for the year ended Dec 31 rose 40.1 per cent to a record HK$9.15 billion.

In Singapore, Nissan vehicles delivered better sales and market share compared to 2012, resulting in a 12 per cent increase in sales units despite an extremely challenging car market last year.

The property division did reasonably well compared to 2012.

As for its unit Motor Image Group, Tan Chong said sales in last quarter declined substantially. This is likely to continue into 2014 as a result of a change in business distribution model by the principal, from a wholesaler/retailer to direct retailer in September 2013.

As for locally-assembled Subaru cars in Thailand, Malaysia and Indonesia, sales did reasonably well but suffered from high start-up and distribution cost.

Earnings per share firmed to HK$1.02 from 54 HK cents previously.

A final dividend of eight HK cents a share was proposed, up from seven HK cents for 2012.

Tan Chong expects to enjoy strong sales of Nissan commercial vehicles and good sales performance this year in Singapore.

On the other hand, it sees a slowdown in the general business and consumer sentiments in China, which will affect the group's business.