Chasen Holdings returned to profitability in the April-June 2020 (“Q1FY2021”) quarter, following a loss in FY 2020 due to business disruptions primarily caused by COVID-19.

• Profit after tax amounted to S$257,000, 9% lower than in Q1FY2020.
• Revenue totalled S$24.9 million, 12% lower than in Q1FY2020.

Net loss for FY2020 was S$15.2 million, resulting from a loss of revenue due to project delays arising from pandemic control measures.

There was no corresponding reduction in overhead costs, and management took a conservative approach to the collection of receivables from clients in China and Singapore.

Stock price

5.9 c


3.4 – 8.9 c

PE (ttm)


Market cap

S$22.8 m

Price-to- book




1-year return

- 28%

Chasen’s Q1FY2021 results were aided by new business in the Third Party Logistics (“3PL”) segment resulting from restrictions on traditional modes of international freight.

Government grants in the various countries of operations were also critical in supporting the Group’s performance during Q1FY2021.

Chasen has announced new orders worth a combined S$21 million, underscoring the ability of its three business segments to overcome recent challenges.

The wins also reflect new business opportunities arising from changes in the operating environment.

All three business segments – Specialist Relocation, 3PL and Technical & Engineering (“T&E”) – appear poised to benefit from new business opportunities.

The Group sees more opportunities in the solar energy sector as the Housing Development Board (HDB) aims to install solar panels to power 135,000 four-room flats with clean energy by 2030.

Overall, HDB targets to install solar panels on about 10,000 blocks, where feasible.

Chasen’s T&E subsidiary Hup Lian Engineering recently secured a S$5 million project to fabricate and install steel frame structures for solar panels in Singapore.

The project win, expected to be reflected in 2HFY2021, was due to its innovative design using lighter composite materials resulting in more cost-effective installation.

Apart from solar panels, the T&E subsidiary is engaged in fabrication and installation of decorative interior wall cladding and fire safety doors.

For the 3PL sector, business traction for cross-border land transport has improved due to rising costs of and disruption to air cargo as a result of COVID-19, while sea freight takes longer than door-to-door cross-border land freight.

Chasen intends to increase its warehouse space in Penang by 128,000 square feet, and also increase its trucking fleet in Malaysia, Thailand and Vietnam from 106 trucks currently to up to 128 by the end of 2021.

3PL activities have increased in the pandemic-induced regional supply chain.

As a leading ASEAN 3PL operator, Chasen provides specialised, specially-fitted transport services for goods that require additional protection during transit such as TV sets and sensitive electronic equipment.

Cross-border land traffic of such goods as well as for clothing and other consumer goods has increased in recent months due to the disruption of other delivery modes.

In the PRC, where lockdowns have eased, the Group expects a recovery from the delays experienced in Q1FY2021 as foreign OEM engineers are now allowed to travel to factory sites to complete equipment installation.

“Our first quarter results show clear signs of recovery for all three business segments. While COVID-19 had impacted the performance in FY2020, we are also seizing new opportunities that will contribute to our performance in the coming months. We remain focused on building on the business momentum, while reviewing our cost structures to improve efficiency and enhance shareholders value. We look forward to an improvement in our financial performance for FY2021.”

-- Low Weng Fatt,
Chasen’s MD and CEO

Its PRC Specialist Relocation subsidiary recently secured a move-in project worth S$9.95 million, expected to be executed over 12 months commencing from Q3FY2021.

The combined Specialist Relocation project wins by the Singapore and Malaysian relocation subsidiaries amounting to S$6 million during this period shows that this sector of the economies of these two countries and the PRC continues to be robust.

Chasen said the geographical and business diversification of the Group’s operations will offer resilience to its performance in the quarters ahead.

The Group sees new opportunities as supply chains evolve in the competitive environment on the back of its cost structure rationalisation and asset utilisation improvement efforts.

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