Freight Management Holding Bhd, FREIGHT (7210) is a non carrier-operating international freight service provider. It is a multimodal intermediary agent between exporters/importers and carriers. Currently, it offers severe types of service, which are seafreight, railfreight, airfreight, tug& barge, warehouse & distribution, customs brokerage, and haulage.
At year 08 January, the group is providing haulage service with total fleet of 30 prime movers and 150 trailers fully comissioned as at August 2009. Currently this service is started with cross-border land transportation to Thailand which provided door-to-door and depot-to-depot services. The group believed that this service holds potential and intended to gradually frow this service from twice weekly run to daily run.
From the latest financial report 2009, the management's efficiency efforts seccessfully lowered the operating costs which resulted in improved gross margin, from 22.1% in FY08 to 24.1% in FY09. The thing need to be highlighted is the management is not just improve the efficiency is one or two years, it has improve the efficiency since FY05 with gross profit margin 17.9%. (The high margin might due to the increasing contribution from customs brokerage, haulage and tug&barge services)
Beside that, the turnover of receivable date and payable date are improving.
Cash flow of FREIGHT is staying healthy and it has almost no debt in their balance sheet.
ROE 17%
Current share price 99 cents
Lastest earning stands at 3.04 cents which translate to PE 8.14 (99/12.16)
The price currently is not attractive yet and i will stay aside and apply wait and see strategy.
At year 08 January, the group is providing haulage service with total fleet of 30 prime movers and 150 trailers fully comissioned as at August 2009. Currently this service is started with cross-border land transportation to Thailand which provided door-to-door and depot-to-depot services. The group believed that this service holds potential and intended to gradually frow this service from twice weekly run to daily run.
From the latest financial report 2009, the management's efficiency efforts seccessfully lowered the operating costs which resulted in improved gross margin, from 22.1% in FY08 to 24.1% in FY09. The thing need to be highlighted is the management is not just improve the efficiency is one or two years, it has improve the efficiency since FY05 with gross profit margin 17.9%. (The high margin might due to the increasing contribution from customs brokerage, haulage and tug&barge services)
Beside that, the turnover of receivable date and payable date are improving.
Cash flow of FREIGHT is staying healthy and it has almost no debt in their balance sheet.
ROE 17%
Current share price 99 cents
Lastest earning stands at 3.04 cents which translate to PE 8.14 (99/12.16)
The price currently is not attractive yet and i will stay aside and apply wait and see strategy.
2 comments:
I am a follower of Freight Management. The stock will stop and rest at every RM0.10. It rested near RM0.70. Then RM0.80. Now trade below RM1.00.
Pls monitor closely, many of my friends miss it when it broke RM0.70. Then they miss again at RM0.80. They were using wait and see strategy but was late in taking action.
yeah, your investment method is almost same as me, which only buy at low PE and high growth stock, maybe we can be a friend and do some analysis.
For the freight, I think i only will invest it when it comes below PE 6 which mean around 70 cents there..
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