发表于 2017-1-31 18:56
TheSnowball 发表于 2017-1-29 16:51
COMPLET 5136 海豚物流
Complete Logistic banks on land logistics
by Daniel Khoo/The Star
Complete Logistic Services Bhd (CompLogis) will pump in the most capital and investments in its history into ‘land logistics’, a segment which it deems as a high growth area.
Its managing director Johnny Law tells StarBizWeek in an interview that he expects this segment to continue to propel its earnings moving forward as its shipping business takes a further backseat in the company’s plans.
“The company started off with shipping as we bought our first vessel in 1995 but I do not think the dynamics in shipping can sustain us now. This is why we are now expanding full steam into land logistics,” Law says.
“Now we derive about 80% of our net profit from land logistics and we expect it to grow to 90% in the near future as we focus on this segment,” Law adds.
The company recorded a net profit of RM4.1mil for its third quarter ended March 31, 2015, a 27.5% year on year growth.
However on a nine month period, its profits dipped slightly to RM10mil from RM12.9mil previously.
The company though is aiming for a double-digit profit growth rate at 10-15% for FY16.
Law says the company would be aggressively expanding into land logistics by pumping in RM30mil-RM40mil in capital expenditures (capex) in the Fy16.
The said capex, which will be funded via a combination of internal and external funds will be used to fund the construction of its planned additional warehouses.
“This is the first time we are spending so much capex for the business, the most in our company’s history.
“Last year we already paid 10% to acquire two pieces of land, then we will need to build a warehouse,” he says.
CompLogis is also in the planning stages for another two warehouses in Pasir Gudang, Johor and Nilai to add to its existing space which is almost fully occupied.
“We will build a warehouse in Westports, Port Klang; Pasir Gudang, Johor; and Nilai. We hope to complete all this by FY16.
“We mostly lease out space on these warehouses,” Law says.
The company today owns 200,000 square feet of warehouse space in operation and expects this to rise to at least 350,000 square feet by the end of FY16.
Law says gearing levels are anticipated to raise to up to 35% from 15% presently.
“We have done our calculations and we are comfortable with this level,” he says.
Shipping still a part of CompLogis’ story
Detailing some of his shipping experience in an interview at Port Klang, the soft spoken but sharp sounding Law says that the shipping industry is still close to his heart as he knows the dynamics of how it works.
“I started off with shipping and we will still be present in the sector no matter how challenging it may be.
“I love shipping and it is my first passion and I will not give up on it so easily.
“The company will still maintain a small fleet and be on the lookout for opportunities,” Law says.
He notes that other than keen competition, other factors come into play on whether a profitably shipment is profitable.
“It is usually one-way traffic for shipping as products are shipped out using the container that is filled up while it is empty when returning. This adds to the challenge of covering costs,” he says.
Persistent oversupply and years of price wars among players in the fragmented industry have worked against itself.
“It is an overcapacity issue. If you have a load factor of 70%, you will still not breakeven.
“Players today are facing cut-throat competition. How long can you keep losing money?” he says.
“There was a time where I was asked by some board members to aggressively expand into container shipping with everyone else but I knew the dynamics of this industry and we stood firm saying no,” Law says.
CompLogis will be embarking on further asset disposals of its fleet of ships in FY16 to five or six vessels from eight to nine presently.
“We have more or less made up our minds to downsize rather than let it drag us down. If however, the market is right we may buy more vessels.
“Certain areas the market is still quite good but the vessel has to be the right size for the country area that is serviced,” he says.
Notably in FY12, CompLogis had recorded a pretax loss of RM19.02mil from the shipping segment due to the impairment of vessels which represents the write-down of the vessels to the recoverable amount based on their fair value less cost to sell.
The impairment loss then of RM18.57mil was included in the ‘other expenses’ line item of the statement of comprehensive income for FY12.
“On pricing, we will definitely look for the best price but we are going to lose money when we do this,” Law says.
Meanwhile, Law tells StarBizWeek that there have been parties seeking to become new significant shareholders in the company but he says he prefers not to raise any money via equity at this point.
“No fund raising for us by this route at this point in time, unless of course there are extraordinary circumstances of inorganic growth that needs to be funded,” Law says.