Are These NZX-Listed Freight and Logistics Stocks Good For Investment?—FRE, MFT, TLL & QEX

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Are These NZX-Listed Freight and Logistics Stocks Good For Investment?—FRE, MFT, TLL & QEX

 Are These NZX-Listed Freight and Logistics Stocks Good For Investment?—FRE, MFT, TLL & QEX
Image source: Travel mania, Shutterstock

Like many other industries, freight and logistics sector in New Zealand were also impacted by COVID-19 related border closures. With lockdowns and other announcements, large scale impact was felt on the freight industry. Freight was affected in many ways such as delays in delivery, less movement and congestion on international channels. However, logistics companies did well as due to increase in online shopping warehousing and logistics assumed importance.

With New Zealand on the path of economic recovery, let’s see how are these NZX listed freight and logistics stocks doing:

Freightways Limited (NZX:FRE)

FRE saw a sharp drop in its revenues in April 2020. However, by the end of the year it improved volumes of express packages.  However, by 1QFY21, it saw strong revenue growth almost 35% up pcp. NPAT was at NZ$19.2M up 43% pcp. The information management business of FRE remained impacted due to COVID-19 related disruptions. However, in 1HFY21, FRE noted strong performance. The information management system was reported to be getting back on track and document destruction recovered to pre-COVID levels in NZ as with economic recovery people started returning to work. Its medical waste revenue was up 100% versus pcp.
Also Read: 4 NZX Industrial Stocks You Can’t Ignore Easily - RAK, SCT, SKL, FRE

For the rest of the year FRE is focusing on facility utilization in NZ and continuing to grow its presence in medical waste vertical.

On 14 May 2021, the stock was trading 0.54% up at NZ$11.260 at the time of writing.

Mainfreight Limited (NZX:MFT)

NZ’s leading logistics and transport company, MFT noted strong performance in its half yearly results ended 30 September 2020. The Company reported a significant rise in its revenues to NZ$1.61 billion. Its NPAT was reported to be at NZ$102.26M up NZ$19.42M versus pcp.  MFT also declared an interim dividend of 30 cps, which was paid on 18 December 2020.

On 14 May 2021, at the time of writing, MFT stock was at NZ$74.500, up by marginal by 0.27%.
Also Read: Are These 5 Stocks Most Sought After On NZX - IFT, SKC, GNE, ARV, MFT?

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TIL Logistics Group Limited (NZX:TLL)

TIL Logistics reported a rise in group revenue, earnings, and profit for H1 ended 31 December 2020, as it gained from better trading across a majority of its divisions. The Group also reported an increase in sector activity since lockdown in April 2020.The Group plans to declare a final dividend for FY21, subject to trading conditions and improving financial performance. TIL expects EBITDA to be of at least NZ$57.4 million as previously projected in FY20.

On 14 May, at the time of writing, TLL was trading at NZ$1.03, down 1.90%.

QEX Logistics Limited (NZX:QEX)

QEX is a logistics company which specialises in the delivery of goods bought in NZ and Australia for online stores that cater to Chinese consumers.

Due to COVID-19 there were significant disruption due to reduction in NZ and Australian diagou sales channels, which had an impact on the group since April 2020. The Company has been making a loss and for the 6 months ended September 2020 it reported a loss after tax of NZ$5.9 M of which a substantial amount was related to inventory loss.

Recently, it announced delisting from the NZX. Trading has been suspended due to non-compliance with NZX rules relating to board composition.

On 14 May2021, the stock was trading flat at NZ$0.285, at the time of writing.


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