Tiong Nam Logistics Holdings Bhd is expanding its warehouse network to meet the increasing demand for integrated logistics solutions, undertaking capital expenditure (capex) of an estimated RM460 million in 2025 and 2026, according to a press statement circulated by the company on Tuesday.

The capex allocation in the the next two financial years, FY2024/251 and FY2025/262 is primarily for warehouse expansion. As at June 30, 2024, the group is constructing four new warehouses in Johor Bahru, Kedah, Sabah and Singapore, with total capacity of 1.3 million square feet (sq ft), to be operational in stages within the two financial years.

Additionally, Tiong Nam plans to build four more warehouses in Johor Bahru, Selangor and Kedah, with a total capacity of 0.7 million sq ft.

The construction of these warehouse facilities in phases is expected to commence in FY2024/25 and continue until FY2025/26.

The ongoing and planned expansion will boost Tiong Nam's total warehousing capacity by 26% to 9.7 million sq ft in FY2025/26, from 7.7 million sq ft as at 30 June 2024.

The group currently has a total of 97 warehouses (both owned and leased) in 19 locations across three countries, namely 89 in Malaysia, three in Singapore, and one in Laos, which are supported by more than 2,000 vehicles.

Managing Director of Tiong Nam Ong Yoong Nyock said, "We are enhancing our logistics and warehousing infrastructure across Malaysia and Singapore to meet the rising demand for integrated logistics solutions. As we aim for significant revenue growth for this segment in FY2024/25, our ongoing expansions will boost our capacity to better serve our customers and capture new opportunities. We are also further developing our landbank through our property development segment. These initiatives will contribute to long-term value to our shareholders."

Founded in 1975, Tiong Nam is one of the largest integrated logistics services providers in Malaysia offering integrated transport services, encompassing general transportation, cross border transfer, heavy transportation, door-to-door delivery, air freight, sea freight, freight forwarding and import, and car carrier services.

Beyond its logistics and warehousing network, Tiongnam's property development division has completed various industrial, commercial, and residential projects amounting to a gross development value of RM1.5 billion. The group's property development segment is undertaking a mixed development project of Kota Masai in Johor. The second and third phases of the project, comprising shop lots and terrace houses with a gross development value of RM106.6 million, are currently under construction.

Also, the group announced on Tuesday that it will distribute a share dividend involving up to 12.9 million treasury shares on the basis of one (1) treasury share for every forty (40) ordinary shares. The ex-date3 for the dividend is 26 November 2024, and the shares will be credited on 18 December 2024.

1. FY2024/25: Financial year to end March 31, 2025 ︎

2. FY2025/26: Financial year to end March 31, 2026 ︎

3. A shareholder must own a stock before the ex-dividend date in order to receive the next scheduled dividend. On and after this date the stock becomes ex dividend (without dividend) where the existing holder of the stock will receive the dividend even if they sell the stock on this date, whereas anyone who buys the stock on this date will not receive the dividend. Source: (Disclaimer: The information provided is for general reference, please confirm the ex-date definition and practice with the dividend-issuing entities for receipt of share dividend.) ︎