Interim result preview
- Core net profit for 1H22 expected to grow 23%
- International freight forwarding continued to drive the growth
- Integrated logistics was an earnings drag
Kerry Logistics Network will announce its 1H22 results on 30 Aug. We forecast a core net profit growth of 23% to HK$1.89bn, aided by stronger contributions from its international freight forwarding business. This was despite the shortfall of contributions from the Taiwan business and Hong Kong warehouse operations disposed in 2H21.
Even excluding the disposed Taiwan business, operating profit from its integrated logistics division should fall noticeably, led by Mainland China and Asia. However, the shortfall should be more than offset by the improvement in contributions from international freight forwarding. In 1H22, freight rates remained at relatively high levels.
Key things to watch for include the management’s outlook on the international freight forwarding business, the updated performance of integrated logistics operations in China, and the company’s latest financial position, amongst others.