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Period : 2022
Date : 8th Oct 2022
Researcher : Esther Low
2022 Q-O-Q revenue for Bursa listed logistics companies
For Q2 of 2022, Bursa listed logistics companies in all industries except e-commerce posted
a higher revenue compared to the same reporting period in 2021. Overall, the industry is
expected to remain resilient despite current macro-economic concerns.
Q2 2022 revenue for Bursa listed logistics companies in e-commerce category
Logistics companies operating in the e-commerce industry reported a decrease in revenue
from Q1 of 2021 to Q1 of 2022. However, revenue has improved for Q2 of 2022 by 1.79%
for GD Express (from RM 91 million to RM 93 million) and 6.8% for Pos Malaysia Berhad
(from RM 484 million to RM 517 million).
For GD Express, upping investments and increasing its staff strength is key to staying ahead
of its many start-up rivals. GD Express with the support of its two strategic shareholders –
Japan’s Yamato Asia Pte Ltd and Singapore Post Ltd – is executing its strategic GDEX 2.0
roadmap. The idea behind GDEX 2.0 is to build a platform-based ecosystem to deliver
better customer experience and attract more customers from both small sized and large
multinational companies according to Managing Director and Group CEO, Mr Teong Teck
Lean.
The company has made strategic investments in SAP Express, Netco and Web Bytes.
According to Teong, the marketplace today is filled with very competitive start-ups backed
by funds who can offer very competitive rates to grab market share. Hence there is a need
for GD Express to step up by fast tracking their growth. Despite numerous plans of mergers
and acquisitions, Teong believes that financing the M&A activities will not be a problem as
GDEX has a strong balance sheet with sufficient net cash position.
For Pos Malaysia, the company is keen to put its courier service, Pos Laju, back on the map
by targeting next day deliveries for 92% or more of parcels received anywhere across
Malaysia. The group currently handles about 400,000 parcels a day, 2 ½ times its regular
load, to support this they have 10,000 couriers and postmen and 126 of its branches
nationwide are open seven days a week. Pos Malaysia has also inked a memorandum of
understanding with online marketplace Ejazmine Sdn Bhd to explore collaboration in
logistics and courier services. Under the deal, Pos Malaysia will be appointed as the
preferred logistics partner.
Q2 2022 revenue for Bursa listed logistics companies in marine category
Overall, the marine logistics companies in Malaysia has continued to enjoy good revenues
from the elevated ocean freight rates. MISC Berhad reported a 36.5% increase in revenue
from RM 2.3 billion in Q2 2021 to RM 3.2 billion in Q2 2022. Meanwhile Westport Holdings
Berhad reported a revenue of RM 510 million in Q2 2022 a marginal increase of 1.2% from
RM 505 million in Q2 2021.
Straits Energy Resources (previously known as Straits Inter Logistics) experience a jump in
revenue from RM 237 million in Q2 2021 to RM 828 million in Q2 2022, the increase in
revenue was mainly contributed by the oil bunkering and shipping related services
segment which increased as a result of its market expansion into Port Klang and the spike
in global oil prices.
Q2 2022 revenue for Bursa listed logistics companies in the 3PL category
Bursa listed logistics companies in the 3PL category remains a mixed bag compared to the
ecommerce logistics and maritime logistics companies. Tasco experience a small increase
in revenue from Q1 to Q2 of 2022 (from RM 421 million to RM 454 million). Meanwhile CJ
Century recorded another quarter of increase in revenue from RM 231 million in Q2 of
2021 to RM 252 million in Q2 of 2022.
Freight Management Holdings meanwhile continues to experience a growth in revenue,
comparing to the same reporting period in 2021, the company has experience a 46%
growth in revenue from RM 228 million for Q2 2021 to RM 334 million in Q2 2022.
Overall
Outlook for the companies operating postal and courier services remains challenging as
these companies are faced with stiff competition from international start ups looking to
penetrate or expand their business footprint. With the continuous easing of travel
restrictions and the gradual return to pre-COVID times, consumers are shifting their
spending back to brick-and-mortar stores thus reducing online shopping. This could impact
parcel volumes for companies like GDEX and Pos Malaysia.
Hence to remain ahead of its competitors and to grab market share, postal and courier
companies will try to stay ahead through strategic partnerships, mergers and acquisitions
and expansion.
Meanwhile for maritime and 3PL companies, the rest of 2022 will remain a huge
uncertainty due to the inflation and recession fears that could impact demand for goods. Any slowdown in consumption would impact these companies as less goods are imported
and exported across countries.