February 14, 2025

Cargo Handlers Limited (CHL)

Unaudited financials for the first quarter ended December 31, 2024:

Cargo Handlers Limited (CHL) reported a 20% decrease in revenue for the first quarter ended December 31, 2024, totalling $110.95 million compared to $139.23 million in the corresponding three months last year.

Cost of Sales amounted to $1.19 million (2023: $1.27 million), representing a 7% decrease year over year. Consequently, gross profit decreased by 20% to $109.76 million compared to $137.96 million for the first quarter ended December 31, 2023.

Administrative expenses increased by 66% to $13.06 million (2023: $7.88 million), while other operating expenses decreased by 23% from $67.20 million in 2023 to $51.53 million for the three months. As a result, total expenses for the first quarter amounted to $64.59 million, a 14% decrease relative to $75.08 million reported in 2023.

Operating profit for the three months amounted to $45.17 million, a 24% decrease relative to $59.73 million reported in 2023. Finance costs totalled $795,916, a 23% decrease from the corresponding period last year (2023: $1.03 million).

Profit before taxation for the first quarter ended December 31, 2024, amounted to $77.83 million, a 3% decrease relative to $80.32 million reported in 2023.

Taxation for the three months decreased by 27% to $11.70 million (2023: $15.96 million). Net profit for the three months amounted to $66.13 million, a 3% increase from the $64.36 million reported in 2023.

Consequently, earnings per share for the three months amounted to $0.16 (2023: EPS: $0.15). The twelve-month trailing EPS was $0.66, and the number of shares used in these calculations was 416,250,000.

Notably, CHL’s stock price closed the trading period on February 13, 2025, at $11.04 with a corresponding P/E ratio of 16.68x.

Balance Sheet Highlights:

The company’s assets totalled $1.30 billion (2023: $1.17 billion). This increase in total assets was attributable to an investment in an associate, which amounted to $415.58 million (2023: $312.31 million). Related companies also contributed to the increase, equating to $87.51 million (2023: $25.33 million).

Shareholders’ equity was $1.23 billion (2023: $1.06 billion), representing a book value per share of $2.96 (2023: $2.55).

Disclaimer 

Analyst Certification – The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.

Company Disclosure – The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.