HONG KONG's Kerry Logistics Network posted a 10 per cent year-on-year net profit increase, excluding one-off gains to HK$976 million (US$125.8 million) in 2014, drawn on revenues of HK$21.1 billion, which increased six per cent.
Profits increased in all of Kerry business segments, including integrated logistics, warehousing and freight forwarding.
"Although the global demand for logistics services is expected to remain flat in 2015 as a result of slowing growth across major economies, the group sees opportunities in the Asean and greater China regions along with increasing intra-Asean trade," the company said in a statement to the Hong Kong stock exchange on Thursday.
"One of the growth drivers shall come from the building of a regional express delivery platform across the Asean region and in mainland China," Kerry said.
Replicating its success in running express delivery services in Thailand, the group will further tap into the booming intra-Asean trade and e-commerce business.
Kerry reported it had obtained an express parcel delivery licence from China's State Post Bureau in January. It also made a number of acquisitions in the Middle East, Canada and Southeast Asia following its initial public offering in December 2013.
Michael Beer, vice president of Citi Research in Hong Kong, said Kerry was a high quality operator, "but will 10 per cent earnings growth suffice? While we continue to believe KLN is a best-of breed operator, the above mentioned acquisitions (and an entry into the US) will need to pad earnings growth above the 10 per cent level for investors to remain engaged."
LOGISTICS
26 March 2015 - 21:31
Kerry Logistics profit up 10pc to US$125 million as revenues rise 6pc
HONG KONG's Kerry Logistics Network posted a 10 per cent year-on-year net profit increase, excluding one-off gains to HK$976 million (US$125.8 million) in 2014, drawn on revenues of HK$21.1 billion, which increased six per cent.
LOGISTICS
26 March 2015 - 21:31
Kerry Logistics profit up 10pc to US$125 million as revenues rise 6pc
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