AJOT Digital Edition | Issue #577

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2014 Media Kit

RHB cuts Century Logistic’s fair value

Author: AJOT | Jan 09 2013 at 07:00 PM | Category: Transport Intermediaries  

RHB Research cut its fair value on Century Logistics Holdings Bhd to 1.42 ringgit from 1.78, after the supply chain management company scaled down its ship-to-ship business in Pasir Gudang waters.

“Supposedly the ‘next big thing’ for Century, the growth plan for its ship-to-ship business will now have to be put on the back burner with its recent exit from Pasir Gudang waters,” it said in a research note.

Maintaining its ‘underperform’ rating on the stock, RHB said the saving grace was that there was still plenty of room for Century to grow its more conventional onshore logistics business comprising the provision of contract logistics, procurement & assembly and warehousing particularly in the southern state of Johor.

RHB said it cut the financial year ending Dec. 31., 2012 (FY12) to FY14 earnings per share forecasts on Century by 10-37 percent, having reduced its assumption on the number of the company’s floating storage units in operation in the period. (Reuters)