Chelsea Logistics Holdings Corporation was registered and incorporated on August 26, 2016, as Chelsea Shipping Group Corp. It was primarily a holding company.
CLC underwent two name changes before finally having the current one in 2017.
The company, through its subsidiaries, engages in the shipping transport business including the maritime conveyance or carriage of petroleum products. These products include, but are not limited to loading, cargo handling, transporting, storing, and discharging over waterways in the Philippines.
Moreover, CLC engages in the transport of passengers and cargo within Philippine territorial waters and high seas.
The company currently has 11 tankers, eight tugboats, seven RoPax, four barges, and three cargo vessels. It also has a 28.50 percent indirect interest in 2GO, which owns 16 RoPax and eight cargo vessels.
Market Cap: PHP 12.84 billion
Sector: Services
Subsector: Transportation Services
Earnings Highlights:
- The company grew its revenues by 138.60 percent at PHP 3.91 billion in 2017 versus 2016.
- The company booked a net income attributable to parent of PHP 161.22 million last 2017.
CLC Delivers Record-High Revenues
CLC released its first-half results for 2018. The current market leader in the shipping and logistics industry generated PHP 2.7 billion in revenues for the first half of the year.
The 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, freighters almost doubled its revenues versus last year as 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.
Net Income Continues to Grow Exponentially
Following the strong revenue growth, CLC booked a net income of PHP 360 million. This figure is 28 percent higher than the recorded PHP 278 million in 2018.
Moreover, the growth is more than double the earnings for the entire 2017.
Fleet Expansion Program
The company 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., which is owned by CLC, from the proposed acquisition of the entire shareholdings of Southwest Gallant Ferries Inc. (Southwest Gallant).
The acquisition also included Southwest Premiere Ferries Inc. (Southwest Premiere). Both companies own one RoPax vessel.
This brings the Company’s fleet to date of 16 tankers, 22 RoPax vessels, 14 tugboats, one floating dock, and 11 cargo ships.
On the other hand, the 2GO Group operates eight RoPax vessels, 11 fast crafts, and five cargo ships.
CLC recently broke ground on a 2.5-hectare land in Brgy. Tipas, Taguig City where it intends to use it as a warehousing facility. Upon completion, it will significantly increase the company’s capacity seven folds from its current size via Workline Services, Inc.
Chelsea Logistics Corporation is Fundamentally Undervalued
The company is trading at PHP 7.05 per share as of writing. This is fundamentally undervalued versus its book value of PHP 7.45.
Currently, CLC has an EPS of PHP 0.20, which further translates to a P/E of 35.25 and is considered quite expensive.
Chart Still Not Out of the Woodwork
Long-term investors of the company are not so happy yet as the downtrend continues. The capital is still recording lower highs and lower lows.
The 50 SMA is acting as resistance, while the 15 EMA and 20 SMA as support. Volume though seems to show volume spikes on green candles already suggesting accumulation.
MACD is bullish. RSI is moving sideways. 6.85 is the estimated Support while 7.26 is the expected Resistance.
Volume
As of August 8, 2018, at 03:30 PM, the volume of CLC is 107.88% of the previous trading day.
Remember the correlation between price and volume.
- bullish price + high volume = high sustainability (price)
- bullish price + low volume = low sustainability (price)
- bearish price + high volume = high sustainability (price)
- bearish price + low volume = low sustainability (price)
Risk Level
CLC has a LOW-RISK level due to its risk percentage of 24.74%.
Foreign Fund Flow
CLC has a zero foreign fund flow as of August 08, 2018.
On a 30-day trading period, CLC is on a Net Foreign Selling worth PHP53,551,377.00.
Top 10 Players’ Sentiment
Trading participants of CLC with a 100% Buying and Selling Activity as of Aug-08-2018 at 03:30 PM:
11 out of 26 participants or 42.31% of all participants registered a 100% BUYING activity
6 out of 26 participants or 23.08% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 7.0396
Top 10 Players’ Selling Average: 7.0564
The psychological average price of the top 10 players as of Aug-08-2018 is from 7.0396 to 7.0564.
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