Is an American Group Buying Up Shares in PDZ?

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Is an American Group Buying Up Shares in PDZ?

Is Amazon or eBay, the large platforms that operate through many segments buying into PDZ Holdings Bhd? Or is there another US-based fund buying up shares in the logistics operator?Word has it that a huge US-based group is buying up shares in PDZ and could emerge as a substantial shareholder in the company.

This news emerged after it was reported that PDZ had won a RM600 million logistics contract with a top China-based e-commerce operator. While we are still figuring out who the Chinese e-commerce operator is, the names that have come up include Alibaba Group Holding Ltd and Tencent Holdings Ltd who currently dominate the China e-commerce market with platforms such as Taobao and JD.com Inc.

Is this why there is so much interest in the stock lately?

The shares of PDZ went up to as high as 16.5 sen this morning and some are expecting the stock to hit limit-up this week. This is highly anticipated given that PDZ is the most actively traded counter in the local stock exchange this week. As at 11.15am, some 526 million shares were traded.

PDZ is a profitable company and the RM600 million contract with the Chinese firm is expected to have a major positive impact on its earnings.The company recorded a net profit for the three months under review, compared to the preceding year corresponding quarter mainly due to the higher revenue and lower administrative expenses.

The logistics business is a booming business especially since the outbreak of the Covid-19.The Global Logistics market accounted for $11.68 billion in 2020 and is expected to reach $15.88 billion by 2027, growing at a CAGR of 4.5 per cent during the forecast period.

Asia is recording high growth in the logistics business and perhaps that is why the US group is looking at Malaysia, and shortlisted PDZ for its expansion.

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