Main points of investment
The logistics assets of Kuok Hock Nien, the richest man in Malaysia, is the 20th largest third-party logistics supplier in the world. it is highly competitive in Asia and other regions, and can meet the increasing market demand for integrated supply chain services. Kerry Logistics is the logistics asset of Kuok Hock Nien, Malaysia's richest man. Kerry Construction, the largest shareholder, holds 40%. KGL, the actual controller, holds a total of 63%. After the spin-off and listing in 2013, the first chairman was the former foreign minister of Singapore, and Guo Konghua, son of Kuok Hock Nien, took over as chairman in 2019.
The company can provide a wide range of supply chain solutions, covering 55 countries and regions around the world, with about 8.33 million square meters of logistics facilities. According to Aspira statistics, the company is the 20th largest third-party logistics supplier in the world in 2019, and it is highly competitive in the Asian market. In 2019, the company had an income of HK $41.139 billion and a net profit of HK $3.788 billion. On February 6, 2021, the company has a market capitalization of HK $42.148 billion.
Began to develop warehousing and logistics business in Hong Kong in 1981, M & An is an important means of business expansion. It started with warehousing business in Hong Kong in 1981 and expanded to logistics business in 1999. The company actively expands its business around the world through mergers and acquisitions, entering the United States in 2001, the UK and Thailand in 2002, Chinese mainland in 2004, acquiring a 70% stake in Kerry Chase in 2005, spin-off listing from Kerry Construction in 2013, and acquiring APEX, the third largest non-vessel freight forwarder from Asia to the United States in 2016.
Business is divided into integrated logistics and international freight, integrated logistics business can provide a number of industry supply chain solutions, international freight business is mainly engaged in freight forwarding business. Integrated logistics includes two parts: logistics operation and Hong Kong warehouse. Logistics operation mainly provides a variety of logistics services according to the needs of customers' supply chain, such as warehousing and value-added services, land transportation and distribution, return management and other supporting services. it can provide complete supply chain solutions for electronic technology, pharmaceutical and other industries. Hong Kong warehouses are mainly leased in Hong Kong. International freight mainly provides air, sea and cross-border land transport services, including receiving at the place of shipment, trunk transit, customs clearance at the receiving place and door-to-door delivery. The company has no aircraft or ships, only operates a fleet of self-owned trucks, mainly through the purchase of external positions to complete the transport of goods.
International freight transportation contributes the most revenue, logistics operation contributes the most profits, Asia is the company's primary market, and Asia outside China is growing rapidly. In terms of business contribution, international freight and logistics operating income account for about 55% and 45% respectively, logistics operating profit accounts for about 60%, and international freight with low profit margin accounts for about 21%. In terms of regional contributions, Chinese mainland and Asia outside China make outstanding revenue contributions, Hong Kong, China and Asia outside China contribute outstanding profits, and Asia outside China is growing rapidly. Logistics operation is mainly engaged in Asian business, and the scale of international freight business in Europe and America is not small.
The main business contributes 55% of net profit and 45% of fair value changes, which is subject to a profit margin of less than 10%. Core net profit and changes in the fair value of investment properties are the main sources, accounting for 55% and 45% of the total, of which core net profit as a whole is growing steadily at a rate of about 10%. Affected by the sale of two Hong Kong warehouses in 2019, the net profit from the sale of Hong Kong warehouses increased by 55.27% year-on-year to HK $3.788 billion, of which HK $1.958 billion was earned from the sale of Hong Kong warehouses. The ROE level of the company basically hovers around 12.5%, of which the return net interest rate is about 7%, the asset turnover ratio is about 0.9, and the equity multiplier is about 2.1.
Risk hint: global trade demand has dropped sharply, the global epidemic has deteriorated sharply, and the global trading environment has deteriorated significantly.