Freight: Earnings Stagnated

Results Update

For QE31/12/2017, Freight's net profit dropped marginally by 1% q-o-q but rose 16% y-o-y to RM5.9 million while revenue rose 3.4% q-o-q & 14.4% y-o-y to RM132 million. Revenue increased q-o-q mainly due to higher activities in Seafreight, 3PL & Warehousing and Landfreight services. PBT decreased slightly by 5% due to higher freight cost and higher share of loss from associates.


Table: Freight's last 8 quarterly results


Graph: Freight's last 39 quarterly results

Financial Position

As at 31/122017, Freight's financial position is deemed satisfactory with current ratio at 2.4x and gearing ratio at 0.6x.

Valuation

Freight (closed at RM1.21 yesterday) is trading at a PE of 9.9 times (based on last 4 quarters' EPS of 12.25 sen). The stock is deemed fairly valued.

Technical Outlook

Freight is struggling to hang onto its long-term uptrend line, SS.

Chart 1: Freight's monthly chart as at Feb 21, 2018 (Source: Malaysiastock.biz)


Chart 2: Freight's weekly chart as at Feb 21, 2018 (Source: Malaysiastock.biz)

Conclusion

Based on good financial performance and position, Freight is considered a good stock for long-term investment.

Note:

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.