MFT, MOV: 2 freight and logistics stocks on watchlist amid supply chain woes

Be the First to Comment Read

MFT, MOV: 2 freight and logistics stocks on watchlist amid supply chain woes

 MFT, MOV: 2 freight and logistics stocks on watchlist amid supply chain woes
Image source: panuwat phimpha, Shutterstock.com

Highlights

  • Businesses are now looking for ways to reduce their exposure to increases in global shipping rates and delays.
  • Mainfreight is due to conduct its annual shareholder meeting on 28 July 2022.
  • Move Logistics expects underlying EBITDA to be between NZ$53 million and NZ$56 million.

Supply-chain challenges have been affecting trade and commercial real estate worldwide since the COVID-19 pandemic struck. NZ is hugely dependent on global suppliers’ ability to ship finished goods into the country, subsequently making it prone to any interruptions in distribution.

Businesses are now looking for ways to reduce their exposure to an increase in global shipping rates and delays. The Ministry of Transport has recently issued a paper outlining long term impacts of the supply chain and its importance. The country is planning for a comprehensive freight and supply chain strategy.

On this note, let’s see how these 3 freight and logistics stocks are doing.

Source: © Enanuchit | Megapixl.com

Mainfreight Limited (NZX:MFT)

Supply chain logistics firm Mainfreight has a market cap of $7.68 billion. The Group operates 3 core products— transport, warehousing, and air & ocean. MFT reported improved financial metrics in 43 weeks of trading until 31 January 2022.

In NZ, MFT’s domestic transport volumes and warehousing business stayed at elevated levels in the period compared to pcp. The Air & Ocean freight demand also remained strong, both inbound and outbound.

However, MFT continues to face congestion issues due to Omicron with restrictions impacting service levels across Europe, Australia and America operations. It expects increased freight volumes to persist in 2022.

DO READ: FRE, MFT, MOV-3 freight & logistic stocks to keep an eye on in May

The Group is due to conduct its annual shareholder meeting on 28 July 2022.

On 23 May, at the time of writing, MFT was trading at $76.31, up 1.61%.

Move Logistics Group Limited (NZX:MOV)  

A freight and transport group in NZ, Move Logistics, has a market cap of NZ$0.13 billion.

The Group’s international volumes improved in FY22 with strong returns, showing a record ocean freight pricing. However, the NZ logistics sector continues to face labour supply scarcities, the COVID-19 pandemic, cost inflation and supply chain disruptions in H2 FY22.

ALSO READ: FRE and MFT: 2 freight stocks amid new emission targets

MOV also noted that its business turnaround programme, which began in August last year, is also progressing well.

MOV expects its underlying EBITDA to be between NZ$53 million and NZ$56 million. The Group’s sale of the Specialist division remains as per its strategy to focus on the core business.

On 23 May, at the time of writing, MOV was trading at $1.13, down 1.74%.

Bottom Line

NZ is looking for methods through which it can future proof its supply chain and restrict the impact of any global shock on businesses in the future.

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

Disclaimer

Speak your Mind

Featured Articles

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK