KUALA LUMPUR: Tan Chong Motor Holdings Bhd net profit for the second quarter ended June 30, 2010 doubled to RM63.65 million from RM34.59 million a year ago on the back of a 29.3% jump in revenue to RM927.92 million.

Earnings per share was 9.75 sen while net assets per share was RM2.48.

Tan Chong declared a gross interim dividend of six sen per share.

Reviewing its performance, Tan Chong said its results reflected a durable recovery in total industry volume.

It said that volumes accompanied by pricing flexibility through localisation, to a large extent impacted the 1H more than a stronger ringgit.

?Despite higher tax provision, 1H 2010 is above 1H 2008, our previous record year, in terms of revenue and profit,? it said in a filing to Bursa Malaysia Securities on Wednesday, Aug 18. On its current year prospects, Tan Chong said that in spite of higher business activity, net gearing remains negligible and working capital is under control.

?Productivity gains as well as creditworthiness to structure finance our receivables had enabled the company to meet higher demand without using up more capital. ?But as the business scale of Tan Chong continues to develop in the next few years, its capital requirements may need to increase correspondingly,? it said.

The company said its business was still subject to market volatility, adding that July car sales had softened but August was seeing rush orders before Hari Raya holidays in September. October-November may be busier and December is usually quiet again, it said.