SINGAPORE - Mainboard-listed logistics specialist Chasen Holdings will focus on scaling up its relocation business in China, Malaysia and the US, grow third-party logistics cross-border land freight business and improving internal cost efficiencies in its Singapore operations, especially those in technical and engineering business.
Management identified these strategic initiatives following a review of its operating environment, the group said in a corporate and business update posted on Singapore Exchange.
The group has begun construction of an 110,000 square foot warehouse in Anhui Province, China, targeted for completion in the latter half of 2018.
It is now setting up its third-party logistics business in China to capture cross-border traffic. Currently, it outsources its third-party logistics work to local companies.
Chasen is planning a transport hub at the Malaysia-Thailand border to provide truck docking services to smaller land freight companies within Thailand, and contemplating setting up a transport hub in Laos to coordinate cross-border traffic in the Indo-China states.
In Singapore, it is planning a S$25 million to S$30 million redevelopment project of its existing Japan Besut premises, where it will build a multi-storey warehouse cum office complex. This will increase the gross floor area to about 254,000 sq ft from the existing 101,617 sq ft footprint, to meet lease renewal critera set by JTC. Chasen's lease will expire 2024.
It added that it is "actively exploring opportunities" to exit the Singapore Exchange's minimum trading price watch list for mainboard-listed companies. It has 36 months from June 5 2017 to raise its six-month volume-weighted average stock price to at least 20 Singapore cents and to raise its six-month average daily market capitalisation to at least S$40 million. Failure to do so could lead to a delisting from the Main board.
Chasen's shares closed on Tuesday (July 10) at S$0.07, 0.2 Singapore cent higher.