CMB International issued a non-rated company report on CN Logistics International Holdings Limited (2130.HK), describing the Group “a niche play with multiple growth drivers” on 5 May 2022.

CN Logistics International (“CNL”) is a comprehensive logistics solutions provider, with a focus on high-end fashion and fine wine products. Underpinned by the global presence, a focus on high-end customers as well as good management execution, CNL delivered a net profit CAGR of 54% in 2019 to 2021.

In March 2022, CNL has entered the cruise logistics industry by completing the acquisition of Allport Cruise Group, an air and ocean freight forwarding service provider for global cruise operators. Allport Cruise Group has already secured 15 contracts and CMBI expects 4 to 5 additional contracts can be secured this year, which is expected to contribute US$2mn (~HK$15.6mn) after tax profit in 2022E.

In addition, CNL extends its service to the field of B2C, particularly in B2C distribution service and e-commerce platform to capture the booming market opportunity. In 2H21, CNL launched an e-commerce platform for wine sales (“PJF Wines”) jointly with eCargo, targeting HK and Mainland China markets. Recently, CNL also started a B2C groupage platform to cater the growing demand for omni-channel logistics, especially from Europe and America to Asia.

With the expectation of continuous recovery in European economy, CNL has acquired all the minority shares in two subsidiaries (CN Italy and CN Switzerland) in 2021 to develop Italy into its European business headquarters, providing logistics services for high-end brands and fine-wine companies as well as facilitating its B2C business. For Southeast Asia market, the Group has set up its 1st regional office in Malaysia and plans to establish new offices in Vietnam, with the aim to grasp opportunities brought by Regional Comprehensive Economic Partnership (RCEP).