Poh Tiong Choon Logistics

Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
#8
(27-03-2011, 04:56 PM)dydx Wrote: PTC's main local transport, cargo handling, and warehousing businesses and profitability are capacity-driven and business volume-dependent. In addition, the margins are subject to strong competition from others like CWT. While their prime-name MNC customers are good, they are fussy and tend to switch suppliers of services once-in-awhile. So PTC's profitability will fluctuate in line with the overall market supply/demand, accentuated by occasional loss of major customers.

Apart from its track record of profitability - fluctuating! - and good annual dividends, we have to ask what's the real investment value of a transport-cum-warehouse operator? And we should not forget PTC carries a decent amount of debts.

PTC has been profitable every year since 1994 (my earliest data). From 2000 to 2009, the revenue trebled almost organically in entirety while trucking "capacity" increased by only 100%. I think this is remarkable because growth is disproportionate to the capacity (and not "capacity driven").

i.e. they are able to get in the sales even though they do not have excess capacity.

Credit should be given to PTC for its ability to maintain an asset-light structure.

The contractors support the business of PTC. They hold the assets and the risk of under-utilization. But of course PTC treats them well. If you plot the contractor cost against profit, you will see a very nice correlation. You will also deduce that PTC is running at 100% capacity. The excess is passed on to the contractors but PTC also profits from that. Volume dependent, absolutely.

I think the important thing to consider is not how much much year-to-year profits fluctuate but how poor a poor year can be. If an investor buys this stock based on a poor year valuation, the rich years will be rewarding.
Reply


Messages In This Thread
Poh Tiong Choon Logistics - by Nick - 11-01-2011, 06:46 PM
RE: Poh Tiong Choon Logistics - by lonewolf - 11-01-2011, 08:38 PM
RE: Poh Tiong Choon Logistics - by mrEngineer - 11-01-2011, 08:53 PM
RE: Poh Tiong Choon Logistics - by Nick - 12-01-2011, 12:14 AM
RE: Poh Tiong Choon Logistics - by lonewolf - 03-03-2011, 05:54 PM
RE: Poh Tiong Choon Logistics - by Nick - 03-03-2011, 06:13 PM
RE: Poh Tiong Choon Logistics - by dydx - 27-03-2011, 04:56 PM
RE: Poh Tiong Choon Logistics - by cif5000 - 29-03-2011, 02:37 PM
RE: Poh Tiong Choon Logistics - by Musicwhiz - 17-11-2011, 07:48 AM
RE: Poh Tiong Choon Logistics - by D123 - 30-01-2012, 03:28 PM
RE: Poh Tiong Choon Logistics - by buffetlunch - 21-03-2015, 04:50 PM
RE: Poh Tiong Choon Logistics - by Zip113 - 07-04-2015, 04:01 PM
RE: Poh Tiong Choon Logistics - by CityFarmer - 20-09-2016, 11:12 AM
RE: Poh Tiong Choon Logistics - by whatamidoing - 20-09-2016, 11:35 AM
RE: Poh Tiong Choon Logistics - by CityFarmer - 22-09-2016, 09:53 AM
RE: Poh Tiong Choon Logistics - by kikababoo - 22-09-2016, 10:13 AM
RE: Poh Tiong Choon Logistics - by CityFarmer - 23-09-2016, 10:59 AM
RE: Poh Tiong Choon Logistics - by lonewolf - 23-09-2016, 12:53 PM
RE: Poh Tiong Choon Logistics - by cyclone - 20-09-2017, 03:33 PM
RE: Poh Tiong Choon Logistics - by karlmarx - 20-09-2017, 06:32 PM
RE: Poh Tiong Choon Logistics - by choya - 31-10-2017, 11:07 PM
RE: Poh Tiong Choon Logistics - by choya - 06-11-2017, 10:59 PM
RE: Poh Tiong Choon Logistics - by choya - 14-11-2017, 12:45 AM
RE: Poh Tiong Choon Logistics - by ghchua - 14-11-2017, 04:22 PM
RE: Poh Tiong Choon Logistics - by choya - 14-11-2017, 05:26 PM
RE: Poh Tiong Choon Logistics - by ghchua - 14-11-2017, 07:47 PM
RE: Poh Tiong Choon Logistics - by choya - 14-11-2017, 10:56 PM
RE: Poh Tiong Choon Logistics - by lonewolf - 20-11-2017, 09:56 PM
RE: Poh Tiong Choon Logistics - by choya - 20-11-2017, 10:09 PM
RE: Poh Tiong Choon Logistics - by lonewolf - 21-11-2017, 07:21 PM

Forum Jump:


Users browsing this thread: 2 Guest(s)