KUALA LUMPUR: Century Logistics Holdings stands to benefit from backing by shareholder CJ KOrea and a healthy balance sheet for long-term scalability, said Kenanga Research.CJ KOrea emerged as Century's largest shareholder after acquiring a 31.44% stake from Datuk RIchard Phua and family for a RM1.45 a share. "We believe there is a strong positive synergistic value from CJ Korea as Century’s largestshareholder. CJ Korea is currently the largest logistics provider, as well as the number-one parcel delivery company in Korea with a 40% market share. The research firm like Century for CJ KOrea's backing, its low net gearing and the company's ability to leverage on its existing branding and networks nationwide. "Timeline-wise, we expect Century to commence its last-mile operations in early FY18, with earnings impact to be largely neutral during its initial few years of infancy.

Source: The Star October 10, 2017 02:48 UTC