CJ Century 2019 earnings seen growing 5%

However, revenue is likely to grow 22% y-o-y in 2019 the back of the commencement of its new multi-storey warehouse in Setia Alam and expanded clientele base for its procurement logistics services (PLS) segment.

KUALA LUMPUR: CJ Century Logistics Holdings Bhd’s 2019 earnings is forecasted to grow at a slower rate of 5% year-on-year to RM8mil despite projected revenue growth.Affin Hwang Capital Research said it expects group performance to be hampered by a higher courier service operating loss of RM12.2m (versus RM6.7mil in 2018) due to low economies of scale.

However, revenue is likely to grow 22% y-o-y in 2019 the back of the commencement of its new multi-storey warehouse in Setia Alam and expanded clientele base for its procurement logistics services (PLS) segment.“We believe that the group will be able to fill up the warehouse capacity given its proximity to a port and a highway.