Latest news with #TanChongMotorHoldingsBhd
New Straits Times
6 days ago
- 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.
The Star
10-07-2025
- Business
- The Star
Avaland acquires 3.2-acre Kuala Lumpur land for RM149mil
PETALING JAYA: Property developer Avaland Bhd is acquiring nine parcels of freehold development land at Jalan Putra, Kuala Lumpur from Tan Chong Motor Holdings Bhd for RM148.8mil. In a filing with Bursa Malaysia, the company said the proposed acquisition is in line with the group's long-term strategic objective to strengthen and expand its footprint within the Klang Valley. 'This acquisition will also further solidify the group's footing in Kuala Lumpur, complementing its existing presence in Seputeh and Taman Desa, and presents an opportunity to strengthen its brand presence through the introduction of investment-focused product offerings in a prime urban location. 'Moreover, the proposed acquisition would reinforce the group's brand positioning as a high-quality property developer in the Klang Valley.' Avaland said the Land is strategically located within an established neighbourhood surrounded by prominent high-rise developments and key landmarks including Sunway Putra Mall, World Trade Centre Kuala Lumpur, Chow Kit Road Market, Petronas Twin Towers, Bukit Bintang, Menara Kuala Lumpur, Dataran Merdeka, and Titiwangsa Park.
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.
