MFT, MOV, FRE- 3 NZX logistics stocks to keep an eye on in May

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MFT, MOV, FRE- 3 NZX logistics stocks to keep an eye on in May

 MFT, MOV, FRE- 3 NZX logistics stocks to keep an eye on in May
Image source: Chokii.Ns, Shutterstock.com

Highlights:

  • NZ businesses are struggling to keep up with increasing costs of raw materials, increased minimum wages and rising costs of freight and transport.
  • Mainfreight anticipates increased freight volumes and improved service management as the year progresses.
  • Move Logistics has applied for dual listing with the ASX as a Foreign Exempt Entity and is likely to be dual listed by the end of May 2022.

The logistics sector of a country is significant in economic development as it facilitates exports/imports and is responsible for the transportation of goods.

Businesses are struggling to keep up with increasing costs of raw materials, increased minimum wages and rising costs of freight and transport. With inflation at a 30-year high of 6.9% and the Omicron impact, increased living costs are, in turn, putting pressure on Kiwi pockets.

On this note, let’s look at the performance of these 3 NZX logistics stocks.

Image Source: © 2022 Kalkine Media

Mainfreight Limited (NZX:MFT)

Engaged in the business of supply chain logistics, Mainfreight shut its logistics services to and from Russia in March and closed its Ukraine office amid Russia’s invasion of Ukraine.

According to the Group's February trading report, congestion, freight prices and surplus demand continued to affect global shipping and airfreight in the period April 2021-January 2022.

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As the year advances, MFT anticipates increased freight volumes and improved service management. It intends to work around constraints imposed by Omicron-mandated absenteeism.

On 29 April, at the time of writing, MFT was trading at $81.29, up 0.23%.

Move Logistics Group Limited (NZX:MOV)  

Move Logistics, one of the largest domestic freight and logistics companies in NZ, applied for dual listing with the ASX as a Foreign Exempt Entity on 22 April.

The application will be reviewed by the ASX, and dual listing is likely to be completed by the May-end of 2022.

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Dual listing would allow the company to reach a larger pool of institutional and individual investors, enhancing liquidity and making future funds more accessible to support development prospects.

On 29 April, at the time of writing, MOV was trading at $1.38, down 0.72%.

Freightways Limited(NZX:FRE) 

Freightways remained resilient during COVID-19 restrictions in H1FY22. The Group’s express package and information management activity fell materially during Level 4 and Auckland lockdowns. However, FRE’s express package volumes bounced back as online shopping was allowed and NZ reopened to the B2B freight.

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FRE declared an interim dividend of 18cps for H1FY22 and expects revenue and earnings growth in FY22 and looks for acquisition prospects ahead. However, the Group anticipates the continued impact of the COVID-19 pandemic in this financial year.

On 29 April, at the time of writing, FRE was trading at $12.27, down 0.24%.

Bottom Line

Increased living costs are being seen across the country and there remain significant supply chain issues and the COVID-19 impact, creating more trouble for NZ businesses.

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

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