With the official opening of the Singapore Southeast Asian Games Organising Committee (SINGSOC) Logistics Centre (SLC) yesterday, CWT Limited (CWT) announced that it will be providing full supply chain management and supporting logistical services inclusive of manpower and transportation for the 28th Southeast Asian (SEA) games.
CWT will also be handling significant air and sea freight during this period. The SLC, which is located on CWT’s premises, will provide a monthly warehouse space of 17,000 sqft and storage space for 11,000 pallets over a 12-month period. CWT is also expected to make ~3,000 truck trips to transport supplies and equipment to competition venues for the games. While we believe this announcement is positive, we think that it is not significant enough to change our forecasts, since it will also be giving SINGSOC discounts on operation transportation costs.
Hence, maintain BUY rating on CWT with an unchanged FV estimate of S$1.98.
No comments:
Post a Comment