Century Logistics gets MIDF backing

KUALA LUMPUR: MIDF Research raised its target price on Century Logistics Holdings Bhd to RM1.82 from RM1.70 even after the company's first-quarter earnings came in below market expectations.

Source from (Business Times): http://www.btimes.com.my/Current_News/BTIMES/articles/midf17/Article/
Published: May 19, 2013

"We opine that the logistics business may recover in the second half of 2013 as overall manufacturing activities are set to pick up again," the research house said in a note yesterday.

Maintaining a "neutral" call on the stock, MIDF said two more distribution centres by Century Logistics with a total of 400,000 sq ft will be ready this quarter and may contribute RM8 to RM9 million additional rental income to the company annually.

"We expect the warehouse business to help fill the earnings void left by the downsizing of its oil and gas transportation segment," it added.


Century Logistics reported a lower-than-expected 3.4 per cent year-on-year rise in net profit at RM4.45 million for the quarter ended March, mainly due to reduced activities in the company's oil and gas logistics and contract business.

The counter dropped 1.20 per cent to RM1.65 at closing yesterday, underperforming the benchmark stock index's 0.14 per cent rise. Reuters