Century aims to grow domestic operations

KUALA LUMPUR: Century Logistics Holdings Bhd aims to grow its local supply chain solutions business, with a focus on its core competency of logistics.

“Currently we are actually taking a very conservative stand on overseas expansion plans, as we find expansion in overseas markets very tough for logistics,” managing director Teow Choo Hing told The Edge Financial Daily after the company’s annual general meeting (AGM) yesterday.

The group is currently concluding the sale of its property in Rojana Industrial Park in the Ayutthaya province of  Thailand for a cash consideration of 320 million baht (RM32.26 million). It expects to conclude the sale within the next two weeks.

Teow said Century’s balance sheet is currently well streamlined, and the company is preparing for a high level growth either through mergers and acquisitions or through organic growth.

The group’s revenue stream has remained consistent, raking in RM255.81 million for the financial year ended Dec 31, 2013 (FY13) against RM256.85 million in FY12. Net profit rose 28% to RM22.55 million from RM17.61 million in FY12.

Teow attributed the increase in profitability to the group’s focus on its core competency — logistics.

“Our business strategy is very focused on logistics, and we have diversified on different spectrums of logistics. We have [Century Logistics] Johor, [Century Logistics] Port Klang, warehouse transportation, supply chain contracts, and procurement logistics.

“We are very spread out, so that is how our strategy of sustainability and maintainability is achieved,” he added.

On whether there would be any diversification plans for Century, Teow said the company would be focusing on logistics at the moment.

“We like to focus on logistics for the time being. Any diversifications must somehow be linked to logistics, or complement logistics, and we don’t foresee any major diversifications as we have focused on logistics as the core competency of the company for many years.”

He added that the group plans to be in the top five position for every sector that it has a presence in, but need not necessarily be in the pole position.

“I can proudly say that we are in the top tier of the logistics sector in terms of healthy growth and profitability,” said Teow.

It was earlier reported in The Edge Financial Daily that plantation giant the Felda Group was eyeing to acquire a stake in Century to enable it to have a supply chain for its various businesses.

“Nothing has been concluded at this stage, as we are still in negotiations,” said chief financial officer Edwin Yeap, adding that the company will make the announcement when there is a new development on the deal.


This article first appeared in The Edge Financial Daily, on April 25, 2014.