Earnings Report /

Kerry Express (Thailand): Deep loss for 2Q22

  • Deepest loss yet

  • KEX reported a loss of Bt732m for 2Q22

  • Revenue declined by 7% YoY and 3% QoQ

Bualuang Securities
11 August 2022

KEX is building market share at the expense of big competitors. And its balance sheet is a lot healthier (debt-free) than the balance sheets of most of the other players in express delivery space. If KEX were to emerge from the price war as the last man standing, there would be huge scope for upside. However, the firm may continue reporting red ink for quarters ahead, until it can achieve substantial volume growth and reduce costs. Our HOLD rating stands till we see clear evidence that KEX is winning the express delivery war.

Deepest loss yet

KEX reported a loss of Bt732m for 2Q22, a YoY reversal from earnings and deeper into the red QoQ. The loss, which was the company’s deepest on record, was 71% deeper than our estimate (and 46% deeper than the consensus), due to lower parcel volume and a higher CPP than assumed.