Cargo transported by Monlogistics Holding (MLG) JSC increased by 163% in 2023 and reached 1 million tons. Let’s take a look at their 2023 operations, which are growing 93 percentage points faster than the transportation industry.
Getting closer to the goal
The volume of export cargo transported by them in 2023 increased by 130% to reach 157.3 thousand tons, bringing them closer to the goal of expanding their position in export transportation. Breaking it down further,
Import transportation decreased by 12% and reached 98 thousand tons, while the volume of cargo transportation within foreign countries increased by 44% and reached 19 thousand tons.
Transit transportation increased by 278% and reached 768,000 tons, accounting for 15.1% of the total transit cargo transportation.
Knowing the field
Since the transportation logistics industry operates on a pay-as-you-go basis, Monlogistics should pay more attention to its short-term liabilities and working capital. They follow it well. Specifically,
Let’s reduce the burden: the balance of short-term loans, which accounted for 16.7% of short-term liabilities in 2022, decreased by 99.2% to 20 million ₮ in 2023, while accounts payable decreased by 8.6% to ₮8.9 billion.
Faster: They took an average of 38 days to collect their receivables in 2022, compared to 28 days in 2023. Although the amount of accounts receivable increased by 9% to 17.3 billion ₮, sales can increase if the receivables are collected quickly.
So why the decline in profits?
Their cost of sales increased by 63.2% to ₮195.1 billion, operating expenses increased by 34% to ₮8.7 billion, and net profit decreased by 8.6% to ₮8.7 billion in 2023. But for the shares of Monlogistics Holding, the P/B ratio is 1.6, P/E is 8.2, and the return on owners’ equity is 25.3%.
Finally, they have decided to distribute 35% of the 2023 net profit or ₮3 billion as dividends. Specifically, 7.58 ₮ per share will be distributed by June 28. So their first dividend yield is 4.2%, which is pretty cool.
