Bisnes

PDZ wins up to RM600 million for logistics

PDZ Holdings Bhd is believed to have won a deal worth RM500 million to RM600 million with a Chinese e-commerce site to provide logistics service for two to three years.

It is unclear who PDZ has signed the deal with but the top e-commerce companies in China are Alibaba, Taobao and Tmall.

The deal is expected to improve the demand for the company’s freight transport, including container liner services.

PDZ has been trading in the range of 3 to 4 sen since late 2018 and the share started to rise in May this year amid the Covid-19 pandemic as the company’s business has been improving.

The stock closed 8.5 sen yesterday, up 1.5 sen or 21.43 per cent over last Friday’s price.

Could it be possible that the stock will hit limit-up this week on news that it has secured the RM500 million to RM600 million deal with a Chinese e-commerce site?

The outburst of the Covid-19 pandemic has caused logistics activity and transportation as well as e-commerce to build up as more and more people are purchasing household items and other necessary products online as they fear traveling outdoors.

Even with the recovery of MCO, consumer sales are increasing online as people continue to look at the various platforms to buy goods.

PDZ’s business has picked up since March this year when the movement control order was implemented.

The company registered 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 mainly due to the higher revenue and lower administrative expenses.

PDZ told the stock exchange after announcing its financial results recently that economic activity is expected to gradually pick up in second half 2020 and to register a positive recovery in 2021.

Notwithstanding this, PDZ will continue to monitor and strive for efficient cost management of its business, while continuing to look for related business to provide enhancement to the group’s existing and future earnings, it said.

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