Insider Asia’s Stock Of The Day: Complete Logistics Services

by **Cals** Fri 28 Nov 2014, 02:00

Insider Asia’s Stock Of The Day: Complete Logistics Services

Complete Logistics Services Bhd ([You must be registered and logged in to see this image.] Financial Dashboard)
Complete Logistics Services (CLS) offers a range of shipping, land transportation and warehousing logistics services. The company began operations in 1995 and was listed in 2007. It currently owns a fleet of eight ships and over 200 trucks.
The jewel in CLS’ crown is the Nilai Inland Port, which contributes 30-40% of revenue. It taps on Nilai’s growing industrial base and provides convenient clearing and bonded warehousing logistics.
Going forward, CLS plans to expand the Nilai facility and use its expertise to provide complete warehousing and transportation solutions for large corporations. To counter rising costs, it will be among the first to import compressed natural gas (CNG) trucks to save on fuel costs.
CLS is less known among investors and as such, trades at much lower valuations. The stock trades at an attractive trailing 12-month P/E of 8.7 times and price-to-book ratio (P/BV) 0.9 times.
By comparison, GD Express Carrier ([You must be registered and logged in to see this image.] Financial Dashboard) trades at a trailing 12-month P/E of 74.5 times and P/BV of 17.9 times while Tiong Nam Logistics Holdings ([You must be registered and logged in to see this image.] Financial Dashboard) trades at a trailing 12-month P/E of 6.2 times and a P/BV of 1.1 times, but with earnings increasingly driven by cyclical property development.
CLS has seen steadily rising revenue since FY March 2011. In FY2014, revenue increased 17.8% to RM120.6 million while net profit rose 16.7% to RM14.0 million. In FY2012, it cleaned up its balance sheet and posted a net loss of RM16.2 million due to impairments on its ships of RM18.6 million.
Gearing is very low at just 3.5% as at 30 June 2014. An interim payout of 3 sen per share was paid in August, which translates to a yield of 3.8%. There were no dividends in the previous four years as it invested in new assets to grow its business and diversify away from shipping.
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This article first appeared in The Edge Financial Daily, on November 27, 2014.