Thursday, September 20, 2012

GLP - jumps 8.8% in past week

Global Logistics Properties (GLP) first listed on the SGX mainboard in Oct 2010, with an initial public offering price of $1.96. Being a government-linked company as well as the second largest IPO in Singapore, the company garnered a lot of interest from institutions and retailers.

Initial performance did not last
GLP had a stellar start, surging 18.4% to close at $2.32 on 29 Oct 2010, two weeks after its debut. However, interest in the counter quickly dwindled and it trended lower, falling to its lowest levels, a year after its IPO. On 4 Oct 2011, GLP traded at $1.50, down 35.3% from its previous high of $2.32, lagging behind the STI which declined 19.4% for the same period.

+73.3% in less than a year
However, a month after GLP made its low of $1.50, the company announced their 2Q FY2012 results which surprised investors when their financial results beat the consensus by 175%. The company has continued to beat estimates every quarter till date.
From 4 Oct 2011 till yesterday, GLP has rallied 73.3%, outperforming the local bourse which has added 21.5% for the same period.

+8.8% in a week
More recently, GLP has made an increase of 8.8% in the past week (since 10 Sept close). This could be attributed to the company’s expansion plans in China. CEO Mei Ming Zhi is particularly interested in China as he said that “80% of China’s logistic facilities are old and obsolete”. He added that “the company wants to rebalance the portfolio and that it intends to grow faster in China”.

Plans in China boost stock price
GLP announced on 10 Sept 2012 that it will partner Haier to develop a state-of-the-art logistics network for the distribution of household appliances across China. The partnership is expected to expand GLP’s customer base within the home appliance distribution industry and further supply chain optimisation for Haier.
Two days later, Mr Mei Ming Zhi mentioned that he plans to spend 8bil yuan a year to build warehouse space in China and on 13 Sept, GLP ended at an all time high of $2.66.

No comments:

Post a Comment