Past Performance Review

Overview of Our Business Activities

We are an investment holding company and are engaged in the provision of management services. Through our subsidiaries, we are an integrated logistics service provider involved in land transport operations, warehousing and distribution operations and other services as depicted in the diagram below:

Revenue

Our revenue is derived mainly from our land transport operations which comprise cargo transportation services and container haulage services. For the FYE 31 December 2014, our cargo transportation services accounted for approximately 53.24% of our Group's total revenue and approximately 41.89% of our Group's total Profit Before Taxation ("PBT") whilst our container haulage services accounted for approximately 36.50% of our Group's total revenue and approximately 33.98% of our Group's total PBT. In aggregate, our land transport operations accounted for approximately 89.74% of our Group's total revenue and 75.87% of our Group's total PBT.

Warehousing and distribution operations accounted for approximately 9.97% of our Group's total revenue and 23.64% of our Group's total PBT for the FYE 31 December 2014.

Revenue derived from other services which comprise freight forwarding and customs brokerage services as well as manufacturing and fabrication of trailers accounted for approximately 0.29% of our Group's total revenue and 0.49% of our Group's total PBT for the FYE 31 December 2014.

Our Group's business generally is not affected by seasonal factors. However, we do experience lower sales during festive season due to regulations which limit the transportation of non-necessity goods during the festive seasons.

Our revenue analysis for the past 4 financial years up to the FYE 31 December 2014 are as follows:
  FYE 31 December
  2011 2012 2013 2014
Revenue RM'000 RM'000 RM'000 RM'000
Land transport operations :
- Cargo transportation services 40,958 47,872 52,263 58,904
  55.03% 52.48% 53.39% 53.24%
- Container haulage services 31,972 40,032 39,369 40,379
  42.95% 43.89% 40.21% 36.50%
Sub-total 72,930 87,904 91,632 99,283
97.98% 96.37% 93.60% 89.74%
 
Warehousing and distribution operations 1,019 2,579 6,040 11,029
  1.37% 2.83% 6.17% 9.97%
Other services 486 734 223 321
  0.65% 0.80% 0.23% 0.29%
Total Revenue 74,435 91,217 97,895 110,633
PBT and PBT Margin

Our Group's PBT has increased from RM8.59 million for the FYE 31 December 2011 to RM18.42 million for the FYE 31 December 2014, representing a Compounded Annual Growth Rate ("CAGR") of approximately 28.95%. Overall PBT margin had maintained relatively consistent between 11.54% and 16.73% for the past 4 financial years up to the FYE 31 December 2014. The increase in PBT and PBT margin was due predominantly to the higher increase in overall Gross Profit ("GP") and GP margin as compared to the increase in selling and distribution expenses, depreciation expenses, finance costs coupled with the relative constant selling and distribution expenses.

Our PBT contribution and PBT margin analysis for the past 4 financial years up to FYE 31 December 2014 are as follows:
  FYE 31 December
  2011 2012 2013 2014
PBT contribution : RM'000 RM'000 RM'000 RM'000
Land transport operations :
- Cargo transportation services 4,680 7,727 7,715 7,717
  54.50% 50.65% 48.89% 41.89%
- Container haulage services 3,320 6,229 5,512 6,259
  38.65% 40.83% 34.93% 33.98%
Sub-total 8,000 13,956 13,227 13,976
  93.15% 91.48% 83.82% 75.87%
 
Warehousing and distribution operations 363 1,087 2,510 4,354
  4.23% 7.12% 15.91% 23.64%
Other services 225 214 42 90
  2.62% 1.40% 0.27% 0.49%
Total 8,588 15,257 15,779 18,420


  FYE 31 December
  2011 2012 2013 2014
PBT margin % % % %
Land transport operations :
- Cargo transportation services 11.43 16.14 14.76 13.10
- Container haulage services 10.38 15.56 14.00 15.50
Warehousing and distribution operations 35.62 42.15 41.56 39.48
Other services 46.30 29.16 18.83 28.04
Overall PBT margin 11.54 16.73 16.12 16.65
PAT and PAT Margin

Our Group's Profit After Taxation ("PAT") increased from RM6.33 million for the FYE 31 December 2011 to RM15.86 million for the FYE 31 December 2014, representing a CAGR of 35.82%, while PAT margin increased 5.82% from the FYE 31 December 2011 to the FYE 31 December 2014 due mainly to the tax incentive granted by Malaysian Investment Development Authority as explained in Section 12.2.6 of our Prospectus.

Our Group's PAT and PAT margin for the financial years under review are as follows:
  FYE 31 December
  2011 2012 2013 2014
  RM'000 RM'000 RM'000 RM'000
PAT 6,331 12,783 13,986 15,856
PAT margin (%) 8.51 14.01 14.29 14.33