Chasen posts Q1 net profit of S$257,000, sees recovery across business segments

MAINBOARD-LISTED logistics firm Chasen Holdings saw profit after tax slip 9 per cent to S$257,000 for the first quarter ended June 30, down from S$282,000 in the year-ago period, it announced on Thursday.

The group's performance was aided by new business from its third-party logistics (3PL) segment, as restrictions on traditional modes of international freight were imposed amid the Covid-19 pandemic, it said.

In addition, government grants in the various countries it operates in were also "critical" in supporting the group's performance for the quarter.  

Revenue fell 12 per cent to S$24.9 million from S$28.3 million last year, while gross profit was down 36 per cent to S$3.4 million from S$5.3 million a year earlier. 

For the financial year ended March 31, 2020, Chasen reported a net loss of S$15.2 million due to disruptions primarily caused by the pandemic. 

Nonetheless, the group subsequently announced new orders worth some S$21 million.

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"The wins also reflect new business opportunities arising from changes in the operating environment following the pandemic that the group can capture opportunistically," Chasen said. 

It added that all three business segments - Specialist Relocation, 3PL, and Technical & Engineering (T&E) - appear poised to benefit from these opportunities.

Separately, Chasen's T&E subsidiary, Hup Lian Engineering, recently bagged a S$5 million project to fabricate and install steel frame structures for solar panels in Singapore. According to Chasen, the project win, expected to be reflected in the second half this year, was due to "innovative design" using lighter composite materials, resulting in "more cost-effective installation". 

Low Weng Fatt, Chasen's managing director and chief executive, said: "Our first-quarter results show clear signs of recovery for all three business segments. While Covid-19 had affected the performance in FY2020, we are also seizing new opportunities that will contribute to our performance in the coming months."

Headquartered in Singapore, Chasen has operations in Malaysia, Vietnam, China, Timor-Leste, Thailand and the US.

As at 1.59pm on Thursday, Chasen shares were trading at 5.9 Singapore cents, up 0.2 cent or 3.5 per cent.