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“We see a bright spot in the domestically-driven third-party logistics sector, which is less vulnerable to external headwinds being buoyed by the booming eCommerce,” Kenanga Research said in a report.
The research house said the booming eCommerce will spur demand for distribution hubs and warehouses to enable just-in-time delivery and reshoring and nearshoring to bring manufacturers closer to end-customers. “There is also strong demand for cold-storage warehouses on the back of the proliferation of online grocery startups.
It said the sector’s earnings delivery improved sequentially in the recently concluded first quarter of this financial year results season with 25%, 50% and 25% beating, meeting and missing its forecasts, as opposed to 75% and 25% coming in within and below in the preceding quarter.
Logisticsgrowth Ecommerceboom Thirdpartylogistics Warehousedemand Supplychainefficiency Coldstorageneeds Freightindustry
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