MFT, MOV, TWL: 3 supply chain stocks on watch amid shipping delays

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MFT, MOV, TWL: 3 supply chain stocks on watch amid shipping delays

 MFT, MOV, TWL: 3 supply chain stocks on watch amid shipping delays
Image source: panuwat phimpha, Shutterstock.com

Highlights

  • Kiwi businesses facing long delays in delivery orders.
  • Mainfreight will pay a final dividend of 87cps on 22 July 2022, taking the full dividend to 142cps for the year.
  • Move was declared as 1 out of the 4 final preferred applicants for co-investment from Waka Kotahi.

Global trade has been shaken because of COVID-19-induced supply chain disruptions.

The COVID-19 pandemic has left Kiwi businesses facing long delays in delivery orders, impacting several retail, building and transport customers. The COVID-19 lockdown in China is partially the reason for the country’s supply chain woes as the lockdown closed most of its exports and manufacturing.

The situation remains grim for exporters and importers as they are facing long shipping delays as the number of ships that arrived on time remained low. Major supply chain hubs saw severe backlogs due to the pandemic and the Russia-Ukraine war.

Amid this backdrop, let’s see how these 3 supply chain stocks are doing.

Image Source: © 2022 Kalkine Media

Mainfreight Limited (NZX:MFT)

Mainfreight posted record results in FY22. It reported a 47.2% rise in revenue to $5.22 billion and an 88.9% increase in net profit to $355.4 million despite supply chain interruptions and lockdowns.

Related Read: Mainfreight (NZX:MFT) posts best-ever results, profit up 89%

MFT saw substantial contribution from the Air & Ocean division and a rise in contributions to profits from domestic Warehousing and Transport. The Group’s NZ business has fared well with the domestic transport network handling record volumes.

DO READ: MFT, FRE: How are these 2 NZX logistic stocks faring in 2022?

MFT will pay a final dividend of 87cps on 22 July 2022, taking the full dividend to 142cps for the year. The Group expects supply chain congestion to continue amid China lockdowns and the Russia-Ukraine war.

It will release its H1 FY23 results on 10 November 2023.

On 15 June, at the time of writing, MFT was trading at $70.99, up 1.13%.

Move Logistics Group Limited (NZX:MOV)  

On 25 June, Move was declared as 1 out of the 4 final preferred applicants for co-investment from Waka Kotahi, an NZ transport Agency, as the Company moves forward with its Oceans strategy. The Oceans strategy will make MOV add an alternate solution service to NZ’s domestic freight services.

This proposal is part of the wider decarbonisation strategy of NZ and the Company plans to focus on transporting its customers' cargo in the most efficient way.

Also read: 5 NZX stocks going ex-dividend in coming days

Move expects its underlying EBITDA to be between $53 million and $56 million for FY22. The Company expects to realise substantial gains from the re-alignment of the business in upcoming year and beyond.

On 15 June, at the time of writing, MOV was trading flat at $1.1.

Trade Window Holdings Limited (NZX:TWL)

Trade Window demonstrated solid progress and organic growth in FY22, accelerated by targeted acquisitions. The Group registered a 136% rise in revenue to $3.9 million and a 108% rise in total income for the period.

ALSO READ: MFT, FRE, MOV: Why are these NZX logistics stocks in the limelight?

TWL launched Cube that allows organisations to securely share data and collaborate with partners across the supply chain. In the year to 31 March 2022, the Group acquired Cyberfreight, SpeEDi and FreightLegend. It also announced the conditional acquisition of Rfider after March 2022 to bolster its supply chain offering.

The Group has a clear approach for FY23 and expects trading revenue to be between $5.5 million to $7 million in FY23.

On 15 June, at the time of writing, TWL was trading flat at $0.95.

Bottom Line

NZ companies continue to be impacted by ongoing supply chain challenges, inflation, the China lockdown and geopolitical uncertainty.

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

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