Chasen posts 38% rise in Q2 earnings to $1.3m

SINGAPORE - Mainboard-listed logistics specialist Chasen Holdings has reported a rise in second quarter net profit, up 38 per cent to $1.3 million from $951,000 for the year-ago period, bolstered by growth in its specialist relocation business.

The company noted that the net profit would have increased 64 per cent to $1.5 million, if not for a one-off professional fee paid for services rendered prior to the financial period under review.

Revenue for the three months ended Sept 30 rose 11 per cent to $33.1 million from $29.8 million for the same period a year earlier, driven mainly by the specialist relocation and third-party logistics businesses.

Earnings per share for the quarter was 0.34 cent, up from 0.26 cent a year earlier.

The company also recorded half-year net profit of $2.8 million, a 64 per cent surge from $1.7 million for the corresponding period of the previous year. Revenue gained 6 per cent to $64.7 million for the six months from $61.0 million for the year-ago period.

Chasen expects to sustain its growth momentum and remain profitable in the quarters ahead, with new projects in hand.

In July, the company clinched a 51 million yuan (S$10.2 million) relocation contract in China to fit out a flat panel display manufacturing plant. In June, Chasen reported $38.4 million of contracts to be carried out between April 2018 and March 2019.

The firm also expects its third-party logistics arm as well as technical and engineering services division to gain traction as they continue to pursue growth in China and South-east Asia.

Chasen has been on the Singapore Exchange's (SGX) watch list since June 2017.

In a separate quarterly update on its watch list status on Tuesday, it said that there is "no material development that may have a significant impact on the movement of the company's share price that would affect its position on the watch list or any other update on its future direction".

The group added that it is studying "several options" that it believes can facilitate its exit from the watch list.