Are NZ freight and logistics stocks back on track?

Highlights

  • Freight & Logistics companies manage the movement of goods in New Zealand and outside.
  • The COVID-19 pandemic had an adverse impact on some of these companies.
  • Because of economic recovery in the first half of CY2021, these companies are now performing better than before.

New Zealand’s border closures due to COVID-19 has an adverse impact on the freight industry due to delays in delivery and closed international borders. Logistics companies, on the other hand, did well as due to online shopping, warehousing gained importance. While the impact of the current lockdown is still to be assessed, if it is extended for a longer period of time, freight companies will again feel the heat.

Let’s look at 5 NZX-listed freight and logistics stocks and how they have performed of late.

logistics, freight, vehicles, carry goods

Image source: © 2021 Kalkine Media New Zealand Ltd

Mainfreight Limited (NZX:MFT)

MFT is a freight forwarding company. However, it deals in warehousing and transportation as well. Its financial performance has been strong for FY21. Its net profit after tax has risen by a record NZ$29 million to NZ$188 million. Global sales witnessed a rise of 145% over pcp to NZ$3.5 billion and the Company announced a dividend, taking the annual dividend to 75cps, which is a  27.1% increase over pcp.

On 17 September, the stock was trading down by 0.77% at NZ$91.810, at the time of writing.
Also Read:  Mainfreight (NZX:MFT): What is its business? Where is it located?

Freightways Limited (NZX:FRE)

FRE faced many challenges due to the COVID-19 pandemic in FY20, but in FY21, the Company performed well. It acquired a Company called Big Chill. It announced its FY21 results on 23 August. It reported strong growth in FY21 with a revenue increase of 27%, EBIT growth by 22% and NPAT increase by 4.6%. Further, the Company plans to focus on niche markets. As a future plan, it will continue to refine its DX business.
Also Read: 4 NZX Industrial Stocks You Can’t Ignore Easily - RAK, SCT, SKL, FRE

On 17 September, the stock was trading up by 1.27% at NZ$12.750, at the time of writing.

MOVe Logistics Company (NZX:MOV)

This company was earlier known as TIL Logistics Limited. It is a leading end-to-end logistics, freight forwarders, and warehousing providers. It also supports supply chain functions from the start to finish. It reported improved revenue and EBIT for FY21 and announced a business review for the Company. Its Group revenue was up by 6% over pcp to NZ$353.2 million. EBIT was NZ$61.3 million, 7% up from pcp. Net profit after tax was NZ$0.9 million. For FY22, the Group looks forward to margin improvement and growing shareholder value. The guidance will be given only after the business review, the Company had announced.

Also Read: Which 5 stocks moved the most on the NZX

Also Read: Are These 5 Small-Cap NZX Stocks Suitable For Long-Term Investment?

On 17 September, the stock was trading at NZ$1.250, down 1.57%.

Napier Port Holdings Limited (NZX:NPH)

NPH is a major port that handles freight and cargo. In the Q3 results released recently, Port recorded a growth in its revenues on the back of increased log exports.
Also read: Five Interesting NZX Stories To Watch Out For Today—TAH, MEE, NPH, SCL and TLT

On 17 August, NPH was trading up at NZ$3.200, at the time of writing.

QEX Logistics Limited (NZX:QEX)

This Company got delisted from the NZX recently. The Company suffered an inventory loss during the COVID-19 pandemic, which was reflected in its earnings report for the 6 months ended September 2020. It reported a loss after tax of NZ$5.9 million.

Also Read: Sailing through rough seas: A peek into NZX-listed logistics stocks - TIL, QEX

On 17 September, the stock was trading flat at NZ$0.285, at the time of writing the article.

Bottomline: The pandemic had an impact on freight and logistics companies as movement was restricted.  As the economy recovers, the Companies are showing better earnings and profitability.

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