Friday, November 28, 2014

CLS (Complete Logistics) ... Lowest Valuations Among Its Peers !!!

It offers a range of shipping, land transportation and warehousing logistics services. The company began operations in 1995. 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% to 40% of revenue, It taps on Nilai’s growing industrial base and provides convenient clearing and bonded warehousing logistics.

Going forward, it plans to expand the Nilai facility and use its expertise to provide complete warehousing and transportation solutions for large corporations.

It trades at a trailing 12 month PER of 8.7 times and a PER of 0.9 times. By comparison, GDEX trades at a trailing 12 month PER of 74.5 times and price to book value of 17.9 times while Tiong Nam Logistics trades at a trailing 12 month PER of 6.2 times and a price to book of 1.1 times but with earnings increasingly driven by cyclical property development.

CSL 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.

Its gearing stood at 3.5% as at 30 June 2014.

There were no dividends in the previous four years prior to Nov 2014 as it invested in new assets to grow its business and diversify away from shipping.

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Please note that all data given are merely blogger's opinion. It is strongly recommended that you do your own analysis and research before investing.