Kerry looks to spin off logistics operations
Unit hopes to ride growth of mainland consumption after increase in earnings
Kerry Properties intends to spin off its logistics arm in a Hong Kong listing, the firm said in a filing with the stock exchange yesterday, at a time when global trade is showing few signs of a strong recovery.
Kerry Logistics Network, a wholly owned subsidiary, operated the largest distribution network and hub operations in greater China and Asean, Kerry Properties' annual report said.
It said it operated 30 million square feet of logistics space in more than 30 countries in five continents, of which nine million sqft were in mainland China.
Former Singapore foreign minister George Yeo Yong Boon has been chairman of Kerry Logistics since August last year.
Net profit at Kerry Logistics, excluding a one-off gain from property revaluations, rose 10 per cent last year to HK$815 million from 2011. Sales grew 20 per cent to HK$19.3 billion.
Kerry Logistics aimed to ride the growth of domestic consumption in China, leveraging its network in 2,600 cities and townships nationwide, the report said.
Net profit margin, which exceeded 4 per cent last year, was double the industry average of 2 per cent, RCM analyst Karen Chan said.