Would NZX freight and logistics stocks see turnaround in 2022?

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Would NZX freight and logistics stocks see turnaround in 2022?

 Would NZX freight and logistics stocks see turnaround in 2022?
Image source: Travel mania, Shutterstock.com

Highlights 

  • The logistics and freight sector help in moving goods in or outside NZ.
  • Move Logistics completed its retail entitlement offer of new shares on Tuesday.
  • Freightways has projected to obtain growth in earnings in FY22.

Logistics refers to the practice of developing and implementing efficient transportation and storage of goods from the origin point to the consumption point, while freight involves the goods movement by trains, ships, aeroplanes or lorries.

NZ’s freight industry experienced COVID-19 impact due to delivery and shipping delays amid lockdowns, while logistics firms fared well due to increased online shopping while people stayed at home.

Let’s have a look at how these 3 NZX fright and logistic stocks are doing.

 

3 NZX Freight and Logistics Stocks and their financials

Image source: © 2021 Kalkine Media, Data source- Refinitiv

Move Logistics Group Limited (NZX:MOV)

Move Logistics, an NZ freight and logistics company, completed the pro rata retail entitlement offer of new shares at $1.4 per share on Tuesday. The Offer is a part of MOV’s plan to raise $40 million in new capital. The offer raised proceeds of nearly $9.6 million.

ALSO READ: Which 2 NZX Freight & Logistics Services stocks have hefty YTD returns?

MOV’s lead managers, Craigs Investment Partners and Bell Potter Securities Limit, will conduct a retail bookbuild of nearly 2.4 million entitlements on Tuesday.

The Group’s shares are likely to begin trading on 16 November after entering into a trading halt, while MOV’s shares issued under the Entitlement Offer will start trading on 18 November.

MOV ended the day flat to close at $1.81.

Freightways Limited (NXZ:FRE) 

Package, business mail as well as information management services provider, Freightways, conducted its AGM on 28 October.

FRE saw strong growth in FY21, with sales increasing by 27% over the previous year and reaching the $800 million mark. However, due to a Level 4 lockdown in New Zealand, FRE's earnings were affected in Q1 FY22, with decreased sales and EBITDA statistics.

RELATED READ: Freightways (NZX:FRE): What is its strategy discussed in ASM?

The Board has also set a final dividend payment at 18 cents, bringing the year's total payout to 33.5 cents.

FRE ended the day 0.39% in red to close at $12.7.

Mainfreight Limited (NZX:MFT) 

Global supply chain firm Mainfreight reported pleasing half-year results for the 6 months ended 30 September 2021. The Group’s revenue soared 41.4% to $2.27 billion and increased NPAT by $57.8 million to $130 million for the period.

ALSO READ: Which 2 NZX retail stocks to be explored before holiday season?

MFT’s air and ocean revenue rose on the back of high air and sea freight prices and increased levels of freight. The present level of activity and growth was projected to continue for the remainder of the fiscal year and into the next year across the company's global network.

MFT ended the day a 1.35% in green to close at $91.5.

Bottom Line

Despite positive growth, supply chain congestion may remain in the future with high freight rates due to demand and supply imbalances.

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

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