PDZ Won An RM600 Million Contract With Top China e-Commerce Operator | Wow. Another post about the economy and business world from Rawlins. Why? well, I want to share the good news with all that the economy is slowly, but surely picking up and insyaAllah, more jobs will be available for all.
So, today another local company is making headlines in the economic world. PDZ Holdings Bhd is a public listed company and been listed on the BSKL since 1996. The company’s principal activity is that of an investment and the group is primarily engaged in container liner business. PDZ started with just one ship and now it has a network that covers 15 countries and 40 ports.
PDZ has just won an RM600 million logistics contract with a top China-based e-commerce operator and it could trade limit-up this week. The question that is playing in everyone’s head is, which top China e-commerce did PDZ signed up with? Alibaba Group Holding Ltd and Tencent Holdings came up when I tried to figure out which e-commerce that PDZ managed to collaborate with.
China’s e-commerce sector is one of the most mature yet innovative in the world. Even during the midst of the global pandemic of Covid-19, it adapted very quickly to the outbreak of Covid-19 and it continues to expand. Meanwhile, some longtime standing retail brands were closing or going bankrupt during the outbreak (the likes of Toys R Us that has been staying in the business for more than 60 years has finally liquidating and closing all of their remaining US stores).
The ability of e-commerce to adapt to new challenges seems to be the way forward for businesses and PDZ is moving in the right direction to get a logistics contract with not just China’s top e-commerce operator whose business is booming but who may also be a world champion.
The news of the China contract deal has seen PDZ is trading close at 8.5 sen yesterday and some think the stock may trade limit-up this week.
A limit up is the maximum amount that the price of a stock or commodity futures contract will be allowed to increase in a single trading session. Both a limit up and a limit down are used to prevent certain assets from reaching excessively high volatility levels.
Winning the logistics deal will certainly widen PDZ’s revenue and net profit in the coming quarters. As it is, PDZ has posted higher revenue of RM1.22 million for the current quarter ended March 31, 2020, compared to the preceding year corresponding quarter of RM1.04 million, due to the higher volume transported by the firm between January and March. It 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.
All these good economic news shows that the world is picking up its pace and everybody will have a piece of that good news, one way or the other. For us Malaysians, these could bode well for all as the economy will be rising up and opportunities will open for all.
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This content was originally published here.