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Satyendra Pathak
Doha
Contract logistics and increasing occupancy in Bu Sulba Warehousing Park has done well for Gulf Warehousing Company as the company’s logistics business remains robust despite current challenges, QNB Financial Services (QNBFS) has said in its latest company report.
GWC has withstood the blockade well with freight-forwarding showing significant growth with rise of 39 percent in 2019 compared to 2017, the report said.
“GWC generates substantial FCF and remains on the hunt for expansion avenues. The Al Wukair Logistics Park contract serves as an example of such a growth opportunity. We do note that 2020 could be a challenging year given the dual headwinds of oil price weakness and economic softness due to the coronavirus,” QNBFS said in the report.
“Longer-term, we retain our bullish thesis on GWC but near-term challenges remain,” it said.
Commenting on the third quarter result announced by the company recently, QNBFS said, “GWC’s net profit increased 3.4 percent year-on-year (YoY) and 4.2 percent quarter-on-quarter (QoQ) and beats our estimate. The company’s net profit of QR61.4 million in the third quarter of 2020 is above our estimate of QR54.5 million.
“Top-line came in at QR327.4 million in the third quarter of 2020, which represents increases of 3.7 percent YoY and 8.3 percent QoQ, which is 8.8 percent higher than our estimate of QR300.9 million. Higher-than-expected revenue, relative to our model, along with modest costs upside lead to the earnings beat.”
“Overall 2020 results should be consistent with our estimates. With earnings per share (EPS) amounting to QR0.29 in the first nine months of 2020, our 2020 EPS estimate of QR0.40 appears reasonable. As we had stated in our preview, we had expected business trends in the third quarter of 2020 to remain similar to the second quarter with GWC capitalising on growth in logistics services as lockdown and travel restrictions have created additional demand for grocery and food-related logistics,” the report said.
“Freight forwarding, contract logistics and warehouse rentals could be stable, along with some benefits from costs reductions and concessions. Reported results appear consistent with our views. We do note that in the third quarter of 2020, the company benefited from QR1.8 million in COVID-19-related rental concessions from two landlords in Ras Laffan and Mesaieed Industrial City,” it said.
Doha
Contract logistics and increasing occupancy in Bu Sulba Warehousing Park has done well for Gulf Warehousing Company as the company’s logistics business remains robust despite current challenges, QNB Financial Services (QNBFS) has said in its latest company report.
GWC has withstood the blockade well with freight-forwarding showing significant growth with rise of 39 percent in 2019 compared to 2017, the report said.
“GWC generates substantial FCF and remains on the hunt for expansion avenues. The Al Wukair Logistics Park contract serves as an example of such a growth opportunity. We do note that 2020 could be a challenging year given the dual headwinds of oil price weakness and economic softness due to the coronavirus,” QNBFS said in the report.
“Longer-term, we retain our bullish thesis on GWC but near-term challenges remain,” it said.
Commenting on the third quarter result announced by the company recently, QNBFS said, “GWC’s net profit increased 3.4 percent year-on-year (YoY) and 4.2 percent quarter-on-quarter (QoQ) and beats our estimate. The company’s net profit of QR61.4 million in the third quarter of 2020 is above our estimate of QR54.5 million.
“Top-line came in at QR327.4 million in the third quarter of 2020, which represents increases of 3.7 percent YoY and 8.3 percent QoQ, which is 8.8 percent higher than our estimate of QR300.9 million. Higher-than-expected revenue, relative to our model, along with modest costs upside lead to the earnings beat.”
“Overall 2020 results should be consistent with our estimates. With earnings per share (EPS) amounting to QR0.29 in the first nine months of 2020, our 2020 EPS estimate of QR0.40 appears reasonable. As we had stated in our preview, we had expected business trends in the third quarter of 2020 to remain similar to the second quarter with GWC capitalising on growth in logistics services as lockdown and travel restrictions have created additional demand for grocery and food-related logistics,” the report said.
“Freight forwarding, contract logistics and warehouse rentals could be stable, along with some benefits from costs reductions and concessions. Reported results appear consistent with our views. We do note that in the third quarter of 2020, the company benefited from QR1.8 million in COVID-19-related rental concessions from two landlords in Ras Laffan and Mesaieed Industrial City,” it said.
