KLB deal a boost for DRB-HICOM
KUALA LUMPUR: DRB-HICOM Bhd's acquisition of Konsortium Logistik Bhd (KLB), through KL Airport Services Sdn Bhd (KLAS), will boost its warehousing, logistics and distribution business, say analysts.
KLB's two largest revenue sources last year were automotive logistics and haulage, with 36 and 39 per cent contribution, respectively, noted MIDF Research in a report.
The automotive logistics volume comes from pre-delivery inspection services at Proton Holdings Bhd.
KLAS is mainly involved in airport ground handling, in-flight catering, cargo handling and supply chain management.
DRB-HICOM shares yesterday slipped four sen to close at RM2.42.
Meanwhile, RHB Research said in a report that DRB-HICOM sees room for synergies as profitability in the logistics business hinges on efficiency and economies of scale.
The research house has maintained a "buy" call on the stock with a target price of RM3.30.
MIDF Research, however, has downgraded KLB to "neutral" with a revised target price of RM1.55.
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