Rainbow Pegasus by Sofia Naznim

Rainbow Pegasus by Sofia Naznim

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Tuesday, July 07, 2020

PDZ Stock Hits New High



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 the forecast period.


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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