Chelsea Logistics Corporation (CLC) confirmed the news reported by PhilStar.com. The article stated that the company allotted USD 142 million for new RORO vessels.
The report was about a quoted statement from its president and chief executive officer, Chryss Alfonsus Damuy. Damuy allegedly announced that the company would have six new vessels on top of the brand new M/V Salve Regina RORO vessel inaugurated last week.
CLC reiterated that it is indeed planning to spend around USD 100 million to purchase more RORO passenger ships spread over two years. It also said that it already contracted four new vessels and additional two vessels as an option.
The target delivery schedules of the four vessels are November 2019, April 2019, October 2019, and April 2020.
M/T Chelsea Providence and M/V Salve Regina
Additionally, CLC announced earlier today that it unveiled the country’s biggest vessel, the M/T Chelsea Providence and the M/V Salve Regina. They will operate a route to and from Batangas-Caticlan.
The inauguration of these vessels were on October 5, 2018.
M/T Chelsea Providence is a medium range oil tanker spanning 183.3 meters in length. It has a carrying capacity of 54 million liters.
On the other hand, M/V Salve Regina is a RORO vessel which can carry up to 500 passengers and 41 vehicles. Kegoya Dock Co. Ltd., a shipbuilder in Japan, created the vessel.
Fleet Expansion Program
CLC added two more cargo freight vessels this year and one more roll-on/roll-off (RoPax) vessel. These ships were launched in July 2018 via the Trans-Shipping Lines.
The Philippine Competition Commission also cleared Starlite Ferries Inc. of the proposed acquisition of the entire shareholdings of Southwest Gallant Ferries Inc. (Southwest Gallant) and Southwest Premiere Ferries Inc. (Southwest Premiere). Both companies own one RoPax vessel.
Chelsea Logistics recently broke ground on a 2.5-hectare land in Brgy. Tipas, Taguig City. The company intends to use it as a warehousing facility.
Upon completion, it will significantly increase the company’s capacity by seven folds from its current size through Workline Services, Inc.
To date, the company has 16 tankers, 11 cargo vessels, 22 RoPax, and 14 tugboats. It also has 8 RoPax vessels, 11 fast crafts, and five cargo vessels in its investee company, 2GO Group Inc.
CLC already released its first-half results. The current market leader in the shipping and logistics industry generated PHP 2.7 billion in revenues for the first half of the year.
This figure is a 67 percent increase versus the same period last year. The tugs and tankers saw double-digit 37 percent growth as revenues reached PHP 1.2 billion.
On the other hand, the freighters almost doubled its revenues versus last year. It grew by 97 percent at PHP 855 million. Revenues from passage booked the highest growth at 116 percent or a total of PHP 545 million.
Following the strong revenue growth, CLC booked a net income of PHP 360 million. The figure is 28 percent higher than the recorded PHP 278 million in 2018.
This amount is also more than double than what it earned for the entire 2017.
Chelsea Logistics: Fundamentally Undervalued
Currently, the company’s share trades at PHP 4.88 per share. This amount is fundamentally undervalued versus its book value of PHP 7.63.
CLC has an EPS of PHP 0.12, which further translates to a P/E of 70.75. However, this figure is quite expensive.
Technical Analysis
CLC is still making new all-time lows. The moving averages are bearishly aligned with the 15 EMA and 20 SMA as immediate resistance.
Volume seems to support a bearish outlook. MACD is bearish. RSI is also bearish and is at oversold levels.
Estimated support is at 4.76 while expected resistance is at 5.27.
Volume
As of October 8, 2018, at 03:30 PM, the volume of CLC is 77.35% of the previous trading day. This stock’s latest volume is already above its 30-day volume average.
Remember the correlation between price and volume.
bullish price + volume above the 30-day volume average = bullish
bullish price + volume below the 30-day volume average = neutral
bearish price + volume above the 30-day volume average = bearish
bearish price + volume below the 30-day volume average = bearish
Risk Level
CLC has a MODERATE-RISK level due to its risk percentage of 45.52%.
Foreign Fund Flow
CLC registered a Net Foreign Selling worth P8,630,570.00 as of October 08, 2018. On a 30-day trading period, CLC is on a Net Foreign Selling worth PHP36,363,489.00.
Top 10 Players’ Sentiment
Trading participants of CLC with a 100% Buying and Selling Activity as of Oct-08-2018 at 03:30 PM:
13 out of 34 participants or 38.24% of all participants registered a 100% BUYING activity
12 out of 34 participants or 35.29% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 4.9439
Top 10 Players’ Selling Average: 4.9422
The psychological average price of the top 10 players as of Oct-08-2018 at 03:30 PM is from 4.9422 to 4.9439.
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