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Kerry Logistics Network

Market Cap

HK$42.1b

Last Updated

2021/05/07 10:18 UTC

Data Sources

Company Financials +

Executive Summary

Kerry Logistics Network Limited, an investment holding company, provides logistics services in Hong Kong, Mainland China, Taiwan, the rest of Asia, and internationally. More Details


Snowflake Analysis

Flawless balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has Kerry Logistics Network's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 636 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 636's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

0.4%

636

0.7%

HK Logistics

-1.8%

HK Market


1 Year Return

110.9%

636

101.1%

HK Logistics

27.5%

HK Market

Return vs Industry: 636 exceeded the Hong Kong Logistics industry which returned 101.1% over the past year.

Return vs Market: 636 exceeded the Hong Kong Market which returned 27.5% over the past year.


Shareholder returns

636IndustryMarket
7 Day0.4%0.7%-1.8%
30 Day0.6%8.0%-1.6%
90 Day0%14.9%-2.5%
1 Year118.1%110.9%110.9%101.1%32.5%27.5%
3 Year118.7%96.4%17.0%3.5%4.0%-7.0%
5 Year157.2%123.3%68.6%41.8%60.1%32.9%

Long-Term Price Volatility Vs. Market

How volatile is Kerry Logistics Network's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Kerry Logistics Network undervalued compared to its fair value and its price relative to the market?

19.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 636 (HK$23.45) is trading below our estimate of fair value (HK$29.2)

Significantly Below Fair Value: 636 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 636 is good value based on its PE Ratio (14.4x) compared to the HK Logistics industry average (14.8x).

PE vs Market: 636 is poor value based on its PE Ratio (14.4x) compared to the Hong Kong market (11.7x).


Price to Earnings Growth Ratio

PEG Ratio: 636's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 636 is overvalued based on its PB Ratio (1.5x) compared to the HK Logistics industry average (1x).


Future Growth

How is Kerry Logistics Network forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-1.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 636's earnings are forecast to decline over the next 3 years (-1% per year).

Earnings vs Market: 636's earnings are forecast to decline over the next 3 years (-1% per year).

High Growth Earnings: 636's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 636's revenue (7.9% per year) is forecast to grow slower than the Hong Kong market (12.6% per year).

High Growth Revenue: 636's revenue (7.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 636's Return on Equity is forecast to be low in 3 years time (8.8%).


Past Performance

How has Kerry Logistics Network performed over the past 5 years?

13.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 636 has a large one-off gain of HK$1.3B impacting its December 31 2020 financial results.

Growing Profit Margin: 636's current net profit margins (5.4%) are lower than last year (9.2%).


Past Earnings Growth Analysis

Earnings Trend: 636's earnings have grown by 13.1% per year over the past 5 years.

Accelerating Growth: 636's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 636 had negative earnings growth (-23.4%) over the past year, making it difficult to compare to the Logistics industry average (10%).


Return on Equity

High ROE: 636's Return on Equity (10.7%) is considered low.


Financial Health

How is Kerry Logistics Network's financial position?


Financial Position Analysis

Short Term Liabilities: 636's short term assets (HK$21.7B) exceed its short term liabilities (HK$14.9B).

Long Term Liabilities: 636's short term assets (HK$21.7B) exceed its long term liabilities (HK$9.5B).


Debt to Equity History and Analysis

Debt Level: 636's debt to equity ratio (29.1%) is considered satisfactory.

Reducing Debt: 636's debt to equity ratio has reduced from 30.6% to 29.1% over the past 5 years.

Debt Coverage: 636's debt is well covered by operating cash flow (45.7%).

Interest Coverage: 636's interest payments on its debt are well covered by EBIT (12.7x coverage).


Balance Sheet


Dividend

What is Kerry Logistics Network current dividend yield, its reliability and sustainability?

1.48%

Current Dividend Yield


Upcoming Dividend Payment

TodayMay 07 2021Ex Dividend DateMay 28 2021Dividend Pay DateJun 11 202114 days from Ex DividendBuy in the next 21 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: 636's dividend (1.48%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (1.94%).

High Dividend: 636's dividend (1.48%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.01%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 636 has been paying a dividend for less than 10 years.

Growing Dividend: 636's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.3%), 636's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 636's dividends in 3 years are forecast to be well covered by earnings (45.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.0yrs

Average management tenure


CEO

William Ma (59 yo)

17.08yrs

Tenure

HK$23,830,000

Compensation

Mr. Wing Kai Ma, also known as William, has been a Managing Director of Kerry Logistics Network Limited since April 2004. Mr. Ma serves as a Joint Managing Director and Group General Manager of Kerry Logis...


CEO Compensation Analysis

Compensation vs Market: William's total compensation ($USD3.07M) is above average for companies of similar size in the Hong Kong market ($USD675.91K).

Compensation vs Earnings: William's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 636's management team is seasoned and experienced (5 years average tenure).


Board Members

Experienced Board: 636's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Kerry Logistics Network Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kerry Logistics Network Limited
  • Ticker: 636
  • Exchange: SEHK
  • Founded: 1981
  • Industry: Air Freight and Logistics
  • Sector: Transportation
  • Market Cap: HK$42.098b
  • Shares outstanding: 1.80b
  • Website: https://www.kerrylogistics.com

Number of Employees


Location

  • Kerry Logistics Network Limited
  • Kerry Cargo Centre
  • 16th Floor
  • Kwai Chung
  • New Territories
  • Hong Kong

Listings


Biography

Kerry Logistics Network Limited, an investment holding company, provides logistics services in Hong Kong, Mainland China, Taiwan, the rest of Asia, and internationally. The company operates through Logisti...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/07 10:18
End of Day Share Price2021/05/07 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.