Johor will have a new regional logistics hub, located close to Singapore and the state government which is said to be involved in the development together with PDZ Holdings Bhd and Sanichi Technology Bhd.
We
understand the hub will cost around RM1 billion to develop, and it will spread
across some 300 acres of land.
The
project is expected to start soon, pending a few more approvals from the
relevant authorities.
We feel Tan Sri Syed Mokhtar Albukhary may also be involved in this development. Syed Mokhtar, a prominent local billionaire, is involved in the ports and logistics business in Malaysia and overseas. There is speculation that he has a keen interest in PDZ.
PDZ is
involved in the container liner business. According to its website, it operates
six vessels that cover domestic and regional trade between Malaysia, Brunei,
Singapore and Myanmar.
The
company is believed to have recently won a RM600 million contract from a top
e-commerce operator in China.
There is a
lot of speculation that the contract could have come from Alibaba Group or
Tencent Holdings Ltd who currently dominate the China e-commerce market with
platforms such as Taobao and JD.com Inc.
PDZ may
want to develop the logistics hub in Johor as it is expecting more jobs from
its partners in Malaysia and overseas. It is also to support the company's
RM600 million contract win from the China e-commerce platform operator.
The
logistics business is doing very well currently and is thriving because of the
Covid-19 pandemic.
Since the
outbreak of Covid-19, more people are buying household goods online or they are
doing online shopping as they fear to move around in public.
PDZ traded
heavily on July 8, with its price rising 11.5 sen or 127.78 per cent to 20.5
sen, giving it a market capitalisation of RM181.75 million. Some 1.33 billion
shares were traded.
On July
10, the stock dropped to 16 sen but inched up to as high as 25.5 with close to
RM1 billion shares traded.
We do
expect a second wave of price increment this week and it may exceed 30 sen.
PDZ posted
a higher revenue of RM1.22 million for the current quarter ended March 31,
2020, compared to the preceding year corresponding quarter of RM1.04 million,
due to the higher volume transported by the firm between January and March.
It recorded a net profit for the three months under review, compared to the preceding year corresponding quarter.
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