Sunday, April 15, 2012

Centuary Logistics Holdings Berhad

Century Logistic Holdings Berhad (CLHB) is a total logistic services provider. Its services include: Supply Chain Management, Procurement Logistics Services, Oil & Gas Logistics, Transport Management & Distribution, Warehousing and Shipping, Chartering & Bunker Services.

For the year ended Dec 31, 2011, the key statistics of the company are as follows:
Paid Cap: RM 84,136
Par Value Per Share: RM1
EPS: 37.79 sen (Diluted 32.14 sen)
Dividend: Interim 5 sen s/tier; Final 7 sen s/tier
NTA: RM2.49

The company has a strong balance sheet with cash and bank balances of RM 22.615 million. The company didn't perform satisfactorily in the last quarter of 2011 mainly because of circumstances beyond its control. Its FSUs (Floating Storage Units) operating in Pasir Gudung Johor, have to be cut down to 3 vessels from 8 for a period of 2 months because of a directive from the Marine Department.

The worst flooding inThailand from end-July to mid-January also affected revenue and earnings. These unfortunate incidences are now a thing of the past.

In Feb, 2011, the company bought a piece of freehold land measuring 65,340 square feet in Setia City for RM8,820,900 to be developed into a commercial office building.

In the Port of Tanjong Pelepas, its warehousing capacity of 460,000 square feet is to be expanded by 400,000 square feet.

In the oil & gas logistics activities, a vessel now known as Onsys Century 1 was purchased for RM15 million in October, 2011. The vessel commenced carrying out spot charter voyages in January 2012.

The 3 actions outlined above will bring much growth to the company in 2012 and beyond.

In the business world of today, more and more companies are going global. This means more & more business for logistic companies.

Every year I pick a stock as my best bet for the year. In 2009, it was KPJ; in 2010, it was TDM; in 2011, it was EPIC and now in 2012 it is CLHB.

The stock is last traded at 1.90.
I believe it will be much higher by the third quarter of 2012. A 50% growth should not be ruled out.

As usual, you buy at your own risk.