Today, we feature a note on Freight Management Holdings Berhad (FREIGHT) in our FundTech Radar – 28th May 2019. FREIGHT is a leading international Freight Services Provider based in Malaysia offering multimodal freight services that includes sea, land, air tug & barge and rail. In FY18, FREIGHT’s exports constituted approximately 24.8% of its total revenue.
· A stable 3-year (FY16-18) sales and core PATAMI CAGR of 6.8% and 1.0% respectively.
· FY18 core PATAMI margin fell to 3.9% (vs. 4.6% in FY17).
· Net gearing ratio rose to 0.15x in its 2QFY19 from 0.10x in 1QFY19.
· It has been paying dividend consistently since FY05, with FY18 div. yield at 4.8%.
· It remains vigilant over the global market uncertainties, rising oil prices and currency pressure precipitated by the developing trade tension between the United States and China.
· Currently trading at a 12-month trailing P/E of 9.8x, which is a 48.2% discount to its domestic peers P/Eof 18.9x.
Testing the downtrend line.
The above information is extracted from CIMB Research Report. For the full research reports, outlook and disclaimers, please logon to your account on www.itradecimb.com.my and click on <Research> Tab under Malaysia.
This FundTech Radar report is intended for educational purposes only. It represents a preliminary assessment of the subject company, and does not represent initiation into CIMB's coverage universe. It does not carry investment ratings and CIMB does not commit to regular updates on an ongoing basis.
28th May 2019
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