Latest news with #RM148.8
New Straits Times
17-07-2025
- Automotive
- New Straits Times
Tan Chong falls 8.0pct before settling flat at midday
KUALA LUMPUR: Tan Chong Motor Holdings Bhd's share price dipped as much as 8.0 per cent in the morning session, before recovering to trade flat at 79 sen by the midday break. The stock touched an intraday low of 72.5 sen, retracing gains from Wednesday's close of 79 sen. It emerged as one of the most actively traded counters, with 19.56 million shares changing hands. The volatility followed an unusual market activity query by Bursa Malaysia yesterday, after the stock surged 44 per cent or 25.5 sen to 83.5 sen from 58 sen on Tuesday. RHB Research said Wednesday's rally reflected a shift in market sentiment, prompting the firm to upgrade its call on the stock to "Buy" from "Sell", with a significantly higher target price of RM1.12 from 27 sen previously. The firm said the market started to relook at Tan Chong from an underlying asset angle following an unexpected land sale on July 10. Tan Chong sold 1.30 hectares along Jalan Putra for RM148.8 million following the first land sale to Avaland Bhd in Petaling Jaya earlier this month for RM49 million. The total gain on disposal for these lands is expected to be between RM15 million and RM18 million with both deals transacted between RM518 per square feet and RM1,067 per sq ft. RHB Research said Tan Chong owns around 5.67-hectare non-manufacturing land - including showrooms, storage and service centres - across Selangor, Kuala Lumpur and Johor, based on its latest annual report. "Assuming market values of RM250-RM1,050 per sq ft, we estimate these lands could be worth RM220 million, roughly 40 per cent of Tan Chong Motor's market capitalisation. "More importantly, the group does not disclose its exhaustive list of assets. "Hence, there may be other smaller properties that might not be used for its automotive business but are suitable for redevelopment, such as the recent land disposal was not included in the Top 10 largest properties, implying more assets to be potentially realised," the firm added. RHB Research said Tan Chong still retains its traditional automotive model of owing the distribution network, which includes showrooms/properties vis-à-vis the current agency distribution model. The firm said there may be incentives for Tan Chong to resize its business model by selling some of their showrooms as Nissan's market share has fallen from six per cent of TIV in 2010 to one per cent in 2024. The group operates around 50-60 branches, of which 20-30 per cent are based in Kuala Lumpur.
Malaysian Reserve
16-07-2025
- Automotive
- Malaysian Reserve
Tan Chong Motor hits near one-year high, gets UMA query from Bursa
TAN Chong Motor Holdings Bhd has been slapped with an unusual market activity (UMA) query by Bursa Malaysia Securities after its share price soared to its highest level in nearly a year. The stock jumped as much as 25.5 sen or 44% to an intraday high of 83.5 sen today before closing at 79 sen, up 21 sen or 36% for the day, with over 29.6 million shares traded. It was among the top gainers and most actively traded counters on Bursa Malaysia. At the closing price, Tan Chong Motor is valued at RM530.88 million. In its query, Bursa asked the Nissan distributor to clarify whether there are any unannounced corporate developments, negotiations, rumours or reports that could explain the unusual trading activity. The company is also required to confirm compliance with disclosure obligations under listing rules. Last week, Tan Chong announced that its wholly owned unit Tanahku Holding Sdn Bhd is disposing of a 3.194-acre land parcel on Jalan Putra to Avaland Bhd for RM148.8 million. The group said proceeds will be used for working capital and future business opportunities. –TMR
New Straits Times
10-07-2025
- Automotive
- New Straits Times
Tan Chong Motors to dispose of land to Avaland's unit for RM148.8mil
KUALA LUMPUR: Tan Chong Motor Holdings Bhd (TCMH) is selling nine plots of freehold land measuring about 12,923.74 square metres in Kuala Lumpur for RM148.8 million. The automotive group said its wholly owned subsidiary Tanahku Holdings Sdn Bhd, which owns the land along Jalan Putra, today inked a sale and purchase agreement (SPA) with Avaland Bhd's indirect subsidiary Solid Interest Sdn Bhd for the disposal. "The disposal will allow the group to unlock the property's value, which remains favourable at this juncture. "The sale proceeds will strengthen the group's liquidity position, enabling it to meet working capital requirements and support investment in new projects," TCMH said in a filing with Bursa Malaysia. It said that the net proceeds from the disposal, after deducting all fees and expenses in relating to the disposal, would be utilised to strengthen the working capital reserve to support operational needs and to invest in other opportunities aligned with the group's long-term objectives. It added that the quantum and timing of utilisation could not be ascertained yet as it would depend on the actual amount available and actual capital requirements at the point of time. "Any part of the disposal price which has yet to be utilised will be placed in deposits with financial institutions or short-term money market instruments. "Interest derived from the deposits placed or any gain arising from short-term money market instruments will be used as working capital of TCMH and its group of companies," TCMH said. Tanahku is a property investment holding company and the property are assets held for investment property purposes for over eight years. Subject to the fulfilment of the conditions precedent stipulated in the SPA, the disposal is estimated to be completed by the first quarter of the financial year ending Dec 31, 2026.
New Straits Times
10-07-2025
- Business
- New Straits Times
Avaland expands KL presence with RM149mil land deal
KUALA LUMPUR: Avaland Bhd has signed an agreement to acquire nine parcels of freehold development land along Jalan Putra, Kuala Lumpur, for a total of RM148.8 million. The company plans to undertake a mixed-use commercial development on the site, with an estimated gross development value (GDV) of about RM900 million, subject to regulatory approvals. The acquisition follows Avaland's recent land purchase in Section 13, Petaling Jaya. Combined, the two proposed developments are expected to deliver a GDV exceeding RM1.2 billion. "The projects are expected to contribute meaningfully to the next phase of the group's earnings growth," it said in a statement. The latest land deal will be financed through a combination of internally generated funds and bank borrowings. Chief executive officer Apollo Bello Tanco said the acquisition aligns with the group's long-term strategic objective to strengthen and expand its footprint within the Klang Valley. "It will enhance our presence in Kuala Lumpur by complementing existing developments in Seputeh and Taman Desa, while providing an opportunity to introduce investment-focused product offerings in a prime urban location. "Moreover, the acquisition will reinforce the group's brand positioning as a high-quality property developer in the Klang Valley," he said. Moving forward, he said Avaland will continue to build on this momentum as it remains focused on actively securing strategic landbanking opportunities within key growth centres across the Klang Valley to drive sustainable growth.
