Tanco slips into 4Q loss despite 19% revenue growth

PETALING JAYA (Aug 27): Tanco Holdings Bhd slipped into a net loss in the fourth quarter ended June 30, 2026 (4QFY2026), despite a 19.5% increase in revenue, as its property development and management division recorded a RM9.78 million operating loss.

Net loss attributable to owners of the company came in at RM3.35 million, compared with a net profit of RM4.86 million in 4QFY2025. This translated into a loss per share of 0.06 sen, against earnings per share of 0.09 sen previously.

Revenue rose to RM38.76 million from RM32.44 million a year earlier, while the group recorded a loss before tax of RM2.03 million, versus a profit before tax of RM7.85 million in the corresponding quarter last year.

In its unaudited quarterly filing with Bursa Malaysia on Thursday (Aug 27), Tanco said revenue increased from RM35.34 million in the immediate preceding quarter, mainly due to higher construction activities, as well as increased revenue from the trading of building materials and hotel operations.

The group recorded a loss after tax of RM2.52 million for 4QFY2026, compared with a profit after tax of RM907,000 in 3QFY2026. Tanco attributed the weaker quarter-on-quarter result mainly to the derecognition of reversals of long-outstanding payables recognised in preceding quarters.

The quarter included a RM4.60 million reversal of impairment losses on investment properties, while payables written off amounted to RM5.21 million. Depreciation and amortisation charges stood at RM2.82 million.

Construction was the group's largest revenue contributor during the quarter, generating RM26.96 million in external revenue. Business consulting services contributed RM7.59 million, while property development and management contributed RM3.07 million.

Property development and management recorded an operating loss of RM9.78 million, while construction posted an operating loss of RM684,000. Resorts and club operations and management generated an operating profit of RM4.79 million, while business consulting services recorded an operating profit of RM3.75 million.

Full-year profit falls despite higher revenue

For the financial year ended June 30, 2026 (FY2026), Tanco's revenue rose 25.2% to RM160.81 million from RM128.46 million previously. However, net profit attributable to owners fell 88.6% to RM897,000 from RM7.88 million.

Profit before tax declined 52.6% to RM7.38 million from RM15.58 million, while profit after tax fell to RM4.21 million from RM11.96 million.

Tanco attributed the lower full-year profit before tax mainly to lower profit margins from the construction of Rumah Selangorku units and the trading of construction materials compared with the previous financial year.

Construction contributed RM115.21 million in FY2026 external revenue and RM4.41 million in operating profit. Business consulting services contributed RM25.22 million in external revenue and RM9.80 million in operating profit, while property development and management posted an operating loss of RM12.52 million.

The group recorded net cash used in operating activities of RM21.46 million for FY2026, compared with RM20.49 million a year earlier. Cash and cash equivalents, after deducting pledged deposits, stood at RM1.94 million as at June 30, compared with RM7.81 million a year earlier.

Port Dickson projects in focus

Looking ahead, Tanco said its ongoing activities include the East Coast Rail Link project, the proposed Midport Smart AI Container Port in Port Dickson and its mid-market residential development pipeline.

The group said its Xanadu Millennium twin-tower development in Puchong, Selangor, has an estimated gross development value of about RM700 million. Sales and promotional activities have commenced, while the sales gallery was officially launched in July. Tanco said it was preparing for the commencement of construction works.

On the proposed Midport Smart AI Container Port, Tanco said planning permission and building-plan approval had been obtained, while the project's commercial structure had been revised to a port development concession model.

The group said it had commenced the ground-breaking phase and entered into a contract for the supply of armour rocks for reclamation works. It is progressing with the next phase, including finalising the technical design and other preparatory works, subject to the necessary approvals, technical requirements and applicable conditions.

During the quarter, Tanco Dot Com Sdn Bhd, an indirect wholly owned subsidiary of Tanco, entered into a memorandum of understanding with China Mobile International Ltd to explore the development and construction of a 50MW IT-load data centre in Port Dickson.

Tanco said it remained cautiously optimistic about its prospects, while recognising uncertainties arising from inflationary pressures, operating costs and prevailing market conditions.

No dividend was proposed or declared for the quarter.

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