MFT, POT, FRE: How are these transportation stocks faring on NZX?

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MFT, POT, FRE: How are these transportation stocks faring on NZX?

 MFT, POT, FRE: How are these transportation stocks faring on NZX?
Image source: Travel mania, Shutterstock.com

Highlights

  • NZ recently completed the final stretch of the Waikato Expressway worth $837 million.
  • Mainfreight expects to witness a continued supply chain congestion in the immediate future.
  • Port of Tauranga recently provided financial assistance related to the Employee Share Purchase Scheme on 31 March 2022.

The transport sector is a significant part of the NZ economy. There will be more use of ports, roads and rail, and airports are set to grow with increasing population, economic activity, overseas visitor arrivals and international trade.

NZ recently completed the final stretch of the Waikato Expressway worth $837 million, which will take motorists away from the congestion of Hamilton. A new business case has also been proposed which would imply rapid bus lanes and cycling networks in Hamilton and a wider Waikato area if approved.

The NZ government has allocated $199 million to Auckland Light Rail, viability studies for a new port in Manukau Harbour and a dry pier at Northport in the Budget this year.

Source: © Drogatnev | Megapixl.com

Amid this backdrop, let’s see how these 3 NZX transport stocks are doing.

Mainfreight Limited (NZX:MFT)

One of the largest freight companies in NZ, Mainfreight registered a 47% rise in revenue and an 89% increase in net profit in FY22 compared to pcp. All 5 regions that MFT operates in saw sales growth and profits.

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

MFT will also pay a final dividend of 87cps on 22 July 2022. It expects to witness continued supply chain congestion in the immediate future with Shanghai lockdowns restricting freight movement and the Russia-Ukraine war limiting airfreight capability.

On 21 June, at the time of writing, MFT was trading at $68.21, up 0.22%.

Port of Tauranga Limited (NZX:POT)

Cargo gateways and shipping solutions providers across NZ, Port of Tauranga recently provided financial assistance related to the Employee Share Purchase Scheme on 31 March 2022. The Group provided financial help in respect of 169,289 shares and the POT Trustee company paid $1,030,463 for the issue of these shares.

ALSO READ: POT, NPH: 2 port stocks in focus as trade situation sparks worries

The Group also engaged in a buyback of nearly 170K shares on-market from 11 March 2022 to 31 March 2022. POT expects to report FY22 earnings between $103 million to $110 million.

On 21 June, at the time of writing, POT was trading at $6.18, up 0.49%.

Freightways Limited (NZX:FRE)

A leading provider of express package services, Freightways Limited’s operations were impacted due to Omicron in March and April. The Group’s operating costs rose due to staff isolating with Express package volumes falling 2% in these 2 months compared to pcp. However, the impact abated in May.

The Group expects an earnings impact of $5 million-7 million in H2 FY22 from reduced revenue and increased costs. FRE will implement its annual price adjustment on 1 July 2022.

At the time of writing on 21 June, FRE was trading at $9.24, up 0.76%.

Bottom Line

The NZ government is taking many steps to make NZ’s transport system greener, safer and more efficient for present and future generations.

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

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