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Kerry Logistics H1 profit up 1pc to US$70.6 million as revenues rise 6pc
HONG KONG's Kerry Logistics Network's first half net profit increased one per cent year on year to HK$548 million (US$70.6 million), drawn on revenues of HK$10.14 billion, up six per cent.
Michael Beer, vice president, Asia Pacific Citi Research, from whom the news comes as nothing had appeared on the Kerry website, said a better tax rate was partially offset by higher minority interest.
Operating profit from the integrated logistics including the Hong Kong warehouse declined two per cent year on year "despite the 5.6 per cent growth in estimated segment net revenue was in part due to the weaker warehouse net revenue".
The contribution from the international forwarding was up nine per cent, reflecting a six per cent estimated net revenue growth.
Forwarding represented 21 per cent of segment profit versus 17 per cent in 2H15. South east Asia performed best within the international forwarding segment, which increased 69 per cent year on year.
Europe recovered from a low base, while China was flat year on year and Hong Kong fell 17 per cent. On the integrated logistics side Hong Kong was up nine per cent and China/Taiwan were flat year on year.
Near-term catalysts may include a US-based forwarding acquisition, expansion of the Siam Seaport in Thailand as well as new logistics facilities in Myanmar, Cambodia and Vietnam (as well as the potential upside associated with the columbarium (a room or building with niches for funeral urns to be stored) project in Chai Wan, Hong Kong, pending regulatory approval.
Michael Beer, vice president, Asia Pacific Citi Research, from whom the news comes as nothing had appeared on the Kerry website, said a better tax rate was partially offset by higher minority interest.
Operating profit from the integrated logistics including the Hong Kong warehouse declined two per cent year on year "despite the 5.6 per cent growth in estimated segment net revenue was in part due to the weaker warehouse net revenue".
The contribution from the international forwarding was up nine per cent, reflecting a six per cent estimated net revenue growth.
Forwarding represented 21 per cent of segment profit versus 17 per cent in 2H15. South east Asia performed best within the international forwarding segment, which increased 69 per cent year on year.
Europe recovered from a low base, while China was flat year on year and Hong Kong fell 17 per cent. On the integrated logistics side Hong Kong was up nine per cent and China/Taiwan were flat year on year.
Near-term catalysts may include a US-based forwarding acquisition, expansion of the Siam Seaport in Thailand as well as new logistics facilities in Myanmar, Cambodia and Vietnam (as well as the potential upside associated with the columbarium (a room or building with niches for funeral urns to be stored) project in Chai Wan, Hong Kong, pending regulatory approval.
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