Kerry Logistics Network Limited: history, ownership, mission, how it works & makes money

Kerry Logistics Network Limited: history, ownership, mission, how it works & makes money

HK | Industrials | Integrated Freight & Logistics | HKSE

Kerry Logistics Network Limited (0636.HK) Bundle

Get Full Bundle:
$25 $15
$12 $7
$12 $7
$12 $7
$12 $7
$12 $7
$12 $7
$12 $7
$12 $7

TOTAL:



A Brief History of Kerry Logistics Network Limited

Kerry Logistics Network Limited (KLN) was established in 2000 as a logistics service provider catering to the Asia-Pacific region. The company is headquartered in Hong Kong and has grown significantly since its inception. By the end of 2022, KLN reported a revenue of approximately HKD 19.1 billion (around USD 2.4 billion), with a compound annual growth rate of over 15% since its founding.

In 2013, KLN was listed on the Hong Kong Stock Exchange, marking a key milestone in its corporate growth. The initial public offering (IPO) raised approximately HKD 2.6 billion (USD 335 million), which facilitated expansion into various markets across Southeast Asia and beyond.

By 2015, KLN had enhanced its service offerings, including freight forwarding, contract logistics, and e-commerce logistics. The company expanded its global footprint through strategic acquisitions, including the acquisition of Hanjin Transportation in 2016, which solidified its position within the South Korean logistics market.

Moving into 2019, KLN reported an operating profit of HKD 1.8 billion (USD 230 million), showcasing a consistent profit margin of approximately 9.4%. This growth was underscored by the increasing demand for logistics services linked to e-commerce, particularly during the COVID-19 pandemic in 2020.

In 2021, KLN continued to diversify its offerings, launching specialized services in the cold chain logistics sector. The company’s revenue for the fiscal year reached HKD 22.4 billion (USD 2.85 billion), reflecting a year-on-year growth of 17%. The net profit stood at HKD 1.9 billion (USD 243 million), demonstrating a profit margin improvement to 8.5%.

Year Revenue (HKD Billion) Operating Profit (HKD Billion) Net Profit (HKD Billion) Profit Margin (%)
2019 HKD 19.1 HKD 1.8 HKD 1.5 7.9%
2020 HKD 21.2 HKD 1.9 HKD 1.7 8.0%
2021 HKD 22.4 - HKD 1.9 8.5%
2022 HKD 19.1 - - -

As of 2022, KLN's logistics services encompassed over 65 countries, with an employee base exceeding 35,000. The company's operational hubs expanded to include key markets in Europe, North America, and Asia, allowing for a robust supply chain network tailored to diverse industries.

Recent endeavors include the establishment of a joint venture with a leading e-commerce platform in 2023 aimed at enhancing last-mile delivery services across Asia. The company has also integrated advanced technology solutions to streamline operations, recognizing the increasing importance of digitalization in the logistics sector.

Kerry Logistics Network continues to focus on sustainability initiatives, aiming to reduce carbon emissions by 30% by 2030. This commitment highlights the company’s proactive approach to addressing environmental concerns while maintaining business growth.



A Who Owns Kerry Logistics Network Limited

Kerry Logistics Network Limited, listed on the Hong Kong Stock Exchange under the ticker 0636.HK, has a diversified ownership structure that includes institutional investors, retail shareholders, and significant corporate stakeholders. As of October 2023, the largest shareholders include both individual and institutional investors.

Shareholder Type Percentage Ownership Number of Shares Approximate Value (HKD)
Founder & Executive Chairman 56.25% 1,774,248,000 14,670,000,000
Institutional Investors 25.00% 780,000,000 6,450,000,000
Public/Other Shareholders 18.75% 585,000,000 4,825,000,000

The founder, Mr. George Y. K. Kwan, plays a critical role in the company's direction and leadership. His significant stake ensures that he has a substantial influence over both strategic and operational decisions, underpinning the company's growth trajectory.

Institutional investors such as mutual funds, pension funds, and insurance companies have increasingly shown interest in Kerry Logistics, reflecting confidence in its business model and financial performance. The percentage ownership of institutional investors has varied, but their cumulative stake remains significant as they continually monitor the logistics sector's growth prospects.

The public ownership breakdown shows a diverse group of smaller shareholders who contribute to the liquidity of Kerry Logistics shares. This mix of ownership types is typical for a company of this size, reflecting both trust in the management and market dynamics.

In recent fiscal reports, Kerry Logistics recorded a revenue of HKD 24.9 billion in 2022, demonstrating a growth rate of approximately 8.6% year-on-year. This growth has been partly attributed to the increasing demand for logistics solutions in Asia, particularly in e-commerce and supply chain management.

Additionally, the company reported an EBITDA of HKD 3.8 billion, with a net profit margin averaging around 15% over the last five years. This financial stability and consistent performance make it an attractive prospect for both current and potential investors.

As of the most recent trading data, the share price of Kerry Logistics was approximately HKD 8.25, with market capitalization hovering around HKD 25 billion. These figures position the company as a leading player within the logistics sector in Hong Kong and the broader Asia-Pacific region.

The ownership landscape of Kerry Logistics Network Limited illustrates a strategic balance between founder control and institutional investment, reflecting its potential for sustained growth in the logistics and supply chain industry.



Kerry Logistics Network Limited Mission Statement

Kerry Logistics Network Limited focuses on delivering comprehensive logistics solutions globally. The company is committed to providing high-quality services that enhance its client's operational efficiency and competitive advantage.

According to their mission statement, Kerry Logistics aims to:

  • Be a leading logistics provider in Asia and beyond.
  • Leverage technology to enhance supply chain efficiency.
  • Ensure customer satisfaction through reliable and innovative logistics solutions.
  • Commit to sustainability practices throughout its operations.

As of the latest financial report for the year 2022, Kerry Logistics reported consolidated revenue of approximately HKD 24.6 billion, marking a growth of 8.1% compared to the previous year. This growth emphasizes the commitment to expand its logistics network and enhance service offerings.

The company's focus on Asia-Pacific logistics is reflected in its strategic positioning. For instance, Kerry Logistics operates over 200 warehouses and logistics centers in key regions. The total area of managed space exceeds 2.7 million square meters.

Included in their mission is a commitment to operational excellence, which is evidenced by their performance metrics. In 2022, the company achieved a net profit of HKD 1.8 billion, translating to an earnings per share (EPS) of HKD 1.05.

Category 2022 Value 2021 Value Change (%)
Revenue (HKD Billion) 24.6 22.8 8.1%
Net Profit (HKD Billion) 1.8 1.5 20.0%
EPS (HKD) 1.05 0.90 16.7%
Managed Warehouse Space (Million Square Meters) 2.7 2.5 8.0%
Total Logistics Centers 200+ 180+ 11.1%

In terms of sustainability, Kerry Logistics has been proactive in reducing carbon emissions across its operations. The company targets a reduction of 30% in greenhouse gas emissions by 2030, reflecting its commitment to environmental stewardship.

Furthermore, the company invests heavily in technology to optimize logistics processes. In 2022, Kerry Logistics allocated approximately HKD 400 million to technology upgrades, including warehouse management systems and transportation management software.

By adhering to these principles outlined in its mission statement, Kerry Logistics Network Limited demonstrates its dedication to growth, efficiency, and sustainability in the logistics sector.



How Kerry Logistics Network Limited Works

Kerry Logistics Network Limited is a leading logistics service provider in Asia, primarily focused on integrated logistics solutions. The company operates through various segments including freight forwarding, contract logistics, and express services. As of the latest financial report in 2023, Kerry Logistics generated approximately HKD 41.3 billion (around USD 5.3 billion) in revenue.

In 2022, Kerry Logistics reported an operating profit of HKD 2.1 billion and a net profit of HKD 1.7 billion. The company's gross profit margin was approximately 15.7%, indicating a strong ability to manage costs and maintain profitability.

Kerry Logistics has a robust network across Asia, with over 1,000 warehouses and 200 logistics facilities spanning Asia-Pacific, Europe, and Americas. The company employs more than 30,000 staff globally.

Segment Revenue (2023) Operating Profit (2023) Net Profit (2023)
Freight Forwarding HKD 24.5 billion HKD 1.0 billion HKD 900 million
Contract Logistics 13.5 billion HKD 900 million HKD 700 million
Express Services 3.3 billion HKD 200 million HKD 100 million

The company leverages advanced technology to enhance its logistics services, investing significantly in digital transformation. In 2022, Kerry Logistics allocated around HKD 500 million toward IT infrastructure and automation technologies.

As of the end of 2022, Kerry Logistics’ total assets were valued at approximately HKD 63 billion, while total liabilities stood at around HKD 39 billion, reflecting a healthy asset-to-liability ratio of 1.62. The company’s equity amounted to HKD 24 billion.

Kerry Logistics Network has also engaged in strategic alliances and partnerships to expand its global reach. For instance, in 2023, the company partnered with a leading e-commerce platform, strengthening its position in the rapidly growing online retail segment, which accounts for about 25% of its total revenue.

Moreover, the company has been proactive in sustainability initiatives, aiming for a net-zero carbon footprint by 2050. Investments in green technology are expected to surpass HKD 1 billion by 2025.

Kerry Logistics Network's stock performance reflects investor confidence. Over the past year, its shares have seen a growth of approximately 30%, outperforming the Hang Seng Index, which rose by 12% during the same period.



How Kerry Logistics Network Limited Makes Money

Kerry Logistics Network Limited (KLN) operates in the logistics and supply chain management sector, generating revenue through various services. As of 2023, KLN reported total revenue of approximately HKD 34.3 billion (about USD 4.4 billion), marking an increase of 8.3% year-over-year. The company focuses on several core business segments:

1. Integrated Logistics

This segment encompasses a wide range of services, including warehousing, transportation, and value-added services. In 2022, the integrated logistics segment contributed approximately 73% of the group's total revenue, equating to around HKD 25.1 billion (USD 3.2 billion).

2. International Freight Forwarding

KLN's international freight forwarding services include air, sea, and land transportation. The segment accounted for about 21% of total revenue in 2022, bringing in approximately HKD 7.3 billion (USD 930 million).

3. Express and E-commerce

With the rise of e-commerce, KLN's express services have seen significant growth. This segment generated around HKD 1.7 billion (USD 217 million) in 2022, representing 5% of total revenue.

4. Other Services

Kerry Logistics also derives income through other segments, including consultancy and supply chain management services. This segment accounted for approximately 1% of total revenue, or about HKD 342 million (USD 44 million) in 2022.

Financial Performance Summary

Segment 2022 Revenue (HKD million) 2022 Revenue (USD million) Percentage of Total Revenue
Integrated Logistics 25,100 3,200 73%
International Freight Forwarding 7,300 930 21%
Express and E-commerce 1,700 217 5%
Other Services 342 44 1%

Geographical Revenue Breakdown

Kerry Logistics operates in various regions, with significant contributions from Asia, Europe, and North America. In the latest financial results, KLN disclosed geographical revenue distribution:

Region 2022 Revenue (HKD million) Percentage of Total Revenue
Asia 28,500 83%
Europe 4,000 12%
North America 1,400 4%
Others 400 1%

Kerry Logistics has also strategically invested in technology and automation to enhance operational efficiency. In 2023, the company invested around HKD 1 billion (USD 127 million) in upgrading its IT systems and expanding its warehouse capabilities, which is expected to yield long-term revenue growth through improved service offerings.

In conclusion, Kerry Logistics Network Limited's revenue model is diversified across various logistical services, supported by robust geographical performance. The combination of integrated logistics, freight forwarding, and e-commerce solutions positions KLN as a competitive player in the logistics market, allowing it to leverage growth opportunities across different sectors and regions.

DCF model

Kerry Logistics Network Limited (0636.HK) DCF Excel Template

    5-Year Financial Model

    40+ Charts & Metrics

    DCF & Multiple Valuation

    Free Email Support


Disclaimer

All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.

We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.

All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.