DBS anticipates that Kerry Logistics (00636) will be able to focus more on integrated logistics and international freight forwarding services in the future, and it is hoped that integration with SF Express will drive long-term stock price performance.
The Zhitong Finance App learned that DBS released a research report saying that the synergy between Kerry Logistics and SF Express is gradually showing, maintaining Kerry Logistics's (00636) “buy” rating. After experiencing recent stock price fluctuations, the current price level is valued below the average of the past five years, based on predicted price-earnings ratios for 2024 and 2025, so the target price was slightly reduced from HK$10.5 to HK$10.3.
According to the report, the company is a leading logistics service provider in Asia, with a global and highly diversified business, and the coverage of its international freight forwarding business has continued to expand in recent years. In addition to introducing SF Holdings (002532.SZ), it also sold its holdings in Kerry, Thailand in December last year. DBS expects the company to focus more on integrated logistics and international freight forwarding business in the future. It is hoped that integration with SF Express will drive long-term stock price performance.