May 16, 2023
Cargo Handlers Limited (CHL) for the six months ended March 31, 2023:
Revenue increased 27% to $287.94 million (2022: $227.07 million). For the quarter, revenue increased 40% to $153.60 million (2022: $110.08 million).
CHL’s gross profit rose 26% to $285.36 million, up from $227.07 million recorded in 2022. For the quarter, gross profit increased 39% to $152.67 million (2022: $110.08 million).
Total expenses for the first six months increased 24% to $133.57 million (2022: $107.84 million). This movement was due largely to a 23% increase in other operating expenses to $114.30 million (2022: $93.19 million).
Despite the increase in expenses, operating profit improved 20% to $161.84 million (2022: $135.41 million). For the quarter, operating profit increased 48% to $86.31 million (2022: $58.24 million). Management noted the increase was, “in line with increased operational activities during the period.”
Finance costs year to date increased 87% to $917,762 (2022: $490,529).
Net profit for the first six months ended March 31, 2023, increased 33% to $150.91 million (2022: $113.89 million). For the quarter, net profit increased 51% to $75.63 million (2022: $50.09 million).
Earnings per share (EPS) amounted to $0.36 (2022: $0.27). For the quarter, EPS amounted to $0.18 (2022: $0.12). The trailing twelve-month EPS amounted to $0.78. The number of shares used in the calculations is 416,250,000. CHL’s stock price closed the trading period on May 15, 2023 at $16.53 with a corresponding P/E ratio of 21.09x.
Management noted, “homeporting cruise vessels registered twice as many calls into Montego Bay over the 3-month period relative to last year, another indication of the industry’s gradual return to pre-pandemic levels of activity. CHL Baggage Handling and Equipment Rental segments realized increases in revenue consequently, and we are confident there will be further development in the ensuing seasons as the Lines build up their presence regionally. Revenue generated from our stevedoring operations increased by 22% when compared to the corresponding quarter in 2022 and is a direct result of improving domestic cargo throughput.”
Balance Sheet Highlights:
Total assets as at March 31, 2023 increased 31% to $996.21 million (2022: $759.26 million). The growth was primarily due to a 64% increase in ‘Short-term deposits’ to $431.55 million (2022: $262.50 million).
Shareholders’ equity as at March 31, 2023 increased 33% to $881.40 billion (2022: $661.99 million) resulting in a book value per share of $2.12 (2022: $1.59).
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 affect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein