Chasen reports 23% rise in Q3 profit on higher revenue

MAINBOARD-LISTED Chasen Holdings 5NV : 5NV 0%achieved net profit after tax of S$583,000 for the third quarter ended Dec 31, 2021, up 23 per cent on the back of a broad-based recovery and pandemic-driven demand for its services.

In a press statement on Tuesday (Feb 15), the logistics group noted higher revenue from all 3 of its business segments over Q3, which led to a 25 per cent increase in revenue to S$43.4 million from S$34.8 million the previous year.

Gross profit margin however declined by 3 percentage points to 15.6 per cent. This was attributed to manpower constraints, costs and power shortages in China.

Fully diluted earnings per share (EPS) for the quarter doubled to 0.1 Singapore cent.

Chasen said the specialist relocation segment - its leading revenue contributor - continued to secure new projects as the semiconductor, solar panel and TFT LCDs sectors remain resilient despite the pandemic.

It expects to bag a move-in project from a Chinese TFT LCD (thin-film-transistor liquid-crystal display). The group said it is also tapping opportunities in Singapore as semiconductor activity picks up locally.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

Strong revenue growth was observed in the third-party logistics segment over Q3, particularly driven by cross-border transportation and associated warehouse services.

Chasen's managing director and chief executive, Low Weng Fat, believes the segment is "well anchored even as it continues to capture growth in an underserved market disrupted by the pandemic".

The group also expects its technical and engineering segment to benefit from abating manpower constraints as border controls ease. It said the segment aims to accelerate training of new workers, improve team productivity, and take on additional solar panel installation projects.

In view of the resumption of activities based on successful vaccination programmes and a "less virulent though highly transmissible Omicron variant of the coronavirus", the group remains positive on its outlook for its 3 business segments in the quarters to come.

The latest set of results brings Chasen's net profit for the first 9 months of FY2022 to S$3.3 million, representing a 33 per cent increase from its 9-month FY2021 earnings of S$2.5 million.

This translates to a 61 per cent higher fully diluted EPS of 0.525 cent, compared to its 9-month EPS of 0.327 cent the previous year.

Shares of Chasen ended flat at S$0.073 on Monday.

READ MORE: 

• Chasen posts H1 earnings up 53% to S$1.6 million on higher revenue

• Chasen bags S$12.4m of specialist relocation, third-party logistics projects

• Logistics new contender in top digitally mature sectors on the back of e-commerce