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Integrated upbeat over logistics services sector

LOGISTICS, NST, MONDAY, 30TH AUGUST 2004
PortsWorld

Integrated Logistics Berhad is confident the market for the logistics sector remains strong in view of the increasing demand for warehousing, transport and distribution sector.

The company, which offers total logistics solutions, realised close to 50 per cent of its revenue from warehouse rental and services during the first of six months of the current financial period.

The company earned RM44.1 million from warehousing activities and another RM51 million from the forwarding, shipping, transport, haulage and airfreight activities.

The recent financial result released to Bursa Malaysia Berhad shows that the group posted a 16 per cent increase in revenue totaling RM88.6 million for the second quarter financial period ended June 30th 2004 compared with RM76.4 million in the corresponding period of 2003.

The increase was mainly from the group's operations in China which saw an impressive jump in revenue of 94 per cent.

The group cites the completion of Shenzhen Phase II and Shanghai Phase I warehouses as the main factor for the jump in revenue.

The China market (Hong Kong and China) contributed some RM23.8 million during the financial period ended June 30th 2004.

Earnings from the market are expected to grow further with the aggressive expansion drive by the group.

Integrated has a total of 92,000 sq metres of warehousing facilities in two cities, Shenzhen and Shanghai.

Despite, the strong growth of the China market, Malaysia still remains its biggest contributing market.

The local market contributed RM64.73 million, or 73 per cent, of the revenue for the first half of the current financial period ended June 2004.

The profit before tax improved by 122 per cent to RM10.7 million compared to RM4.8 million in the preceding year to date as a result of a higher revenue and an improved gross profit margin.