CGS-CIMB Research has initiated coverage on Singapore-based integrated warehouse and logistics service provider with a target price of 18 cents as it sees strong potential in its earnings growth for FY2021F.

On this, Ong Khang Chuen and Kenneth Tan say they forecast a 93% y-o-y growth for the company’s net profit after tax (NPAT) in FY2021F, riding on Singapore’s enhanced medical supply stockpiling and China’s infrastructure boom.

This, they say, supports their forecast of a 21% y-o-y increase in revenue and operating profit margin (OPM) expansion to 11% from 8% in FY2020.

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