How are 5 NZX transportation stocks faring amid lockdowns?

Highlights

  • New Zealand has a large, efficient and diverse transportation sector.
  • Mainfreight experienced a drop in domestic transport trading revenue in FY21.
  • MOVe Logistics’s trading was impacted in H1 of the financial year due to the COVID-19 lockdown.

Transportation stocks include companies that provide the service of moving people or goods from one place to another, which involves heavy equipment makers, shipping companies, air freight companies, railroads, trucking companies, etc.

New Zealand has a large and distinct transport sector stocked with the latest energy-efficient technologies.

Let’s skim through these 5 NZX transportation stocks dealing with lockdowns.

NZX transportation stocks with their last price and market cap

Image source: © 2021 Kalkine Media New Zealand Ltd, Data source- Refinitiv

Mainfreight Limited (NZX:MFT)

Mainfreight, a freight forwarding company, witnessed a strong FY21. Trading across all regions continued to be greater than previous year.

RELATED READ: Which 5 attractive NZX penny stocks ended in green?

COVID-19 lockdown restrictions in NZ witnessed a lower-than-anticipated fall in revenues, while trading in Australia continued undiminished. After lockdowns, while domestic transport trading has seen a drop of 30% in revenue, warehousing activity has been consistent with previous weeks, and Air & Ocean division saw the present demand for MFT’s services.

MFT ended the day 1.09% in green to close at $92.4.

Freightways Limited (NZX:FRE)

Freightways continued to set new expectations for customers, increase income and lift career aspirations. The Group witnessed a record year in earnings, and performances across business show huge efforts put in by the company.

DO READ: A lens on 5 NZX retailers amid the prevailing lockdown

Activity levels are substantially affected across all NZ businesses under Alert level 4. The express package business is likely to recover quickly as alert levels are reduced from 4 to 3.

FRE ended the day 1.09% in red to close at $12.65.

MOVe Logistics Group Limited (NZX:MOV)

MOVe Logistics, a freight and logistics company advised that the trading over the course of H1 of the financial year was significantly affected by COVID-19-related limitations due to the present Alert Level 4 lockdown in Auckland.

RELATED ARTICLE: MOVe Logistics (NZX:MOV) expects its H1 earnings to be impacted amid COVID-19

The Group’s fuel and freight divisions are facing the impact of lower economic activity amid the COVID-19 lockdown.

MOV ended the day 1.33% in red to close at $1.48.

Marsden Maritime Holdings Limited (NZX:MMH)

Marsden Maritime, providing industrial and commercial land for lease, declared a net profit of $14.26 million for the year ended 30 June 2021. Revenue from MMH’s marina and property operations saw an increase of 14.6% in the period on pcp.

Bulk cargo throughput at Northport increased 18.3% while annual container volumes also rose marginally on the prior year. The new ‘ecosystem’-based business strategy of MMH provided direction and focus for growth and will make sure that land holdings continued to be improved for the best long-term results.

MMH ended the day flat to close at $6.35.

Tourism Holdings Limited (NZX:THL)

Tourism Holdings provides RVs for rent and sale across Australasia. The Group reported a statutory net loss after tax of $14.5 million but THL managed well compared to the global tourism.

ALSO READ: What lies ahead for NZ travel and tourism sector in 2021?

The rental business in Australia posted positive EBIT results even after lockdowns with positive expectations for domestic demand and average yields. However, NZ rentals and tourism business continues to be tough.

THL ended the day 1.29% in green to close at $2.36.

Bottom Line

It remains to be seen how the transportation sector fares as NZ lowers its lockdown alert levels ahead.

(NOTE: Currency is reported in NZ Dollar unless stated otherwise)

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