Limit-up for PDZ Holdings Bhd next? Quite possible since it won a RM600 million logistics contract with a top China-based eCommerce operator.
The stock traded in high volume this morning, opening 1.5 sen up to touch 10 sen, with some 70 million shares exchanging hands.
The stock has been rising steadily upward since
July 1 this year from the range of 4 and 5 sen probably because investors may
have found out about the company's contract win.
Nobody knows who PDZ has partnered with in China
but the names we hear are Alibaba Group Holding Ltd and Tencent Holdings Ltd
who currently dominate the China e-commerce market with platforms such as
Taobao and JD.com Inc.
This contract is a big deal for PDZ as it will help
to improve the company's financial earnings.
PDZ posted higher revenue of RM1.22 million for the
current quarter ended March 31, 2020, compared to the preceding year
corresponding quarter of RM1.04 million, due to the higher volume transported
by the firm between January and March.
It recorded a net profit for the three months under
review, compared to the preceding year corresponding quarter mainly due to the
higher revenue and lower administrative expenses.
The logistics business is sky-rocketing because of
the Covid-19 pandemic.
The Global Logistics market accounted for $11.68
billion in 2020 and is expected to reach $15.88 billion by 2027, growing at a
CAGR of 4.5 per cent during th
Some of the key factors propelling the market
growth is rising use of multimodal transport and innovation in mobile
technologies.
On the basis of geography, Asia is anticipated to hold considerable market share during the forecast period due to the factors such as the occurrence of many consumer bases for food and beverage and healthcare invention suppliers, greater than ever demand for LNG, mounting demand for cold-chain logistics, and an escalating number of automobile manufacturing plants are causal to the logistics market growth in this region.
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