Kerry Express (Thailand): Rules to survive—improve service quality, cut costs, and make profits
Kerry Express (Thailand): Buy
The seasonality of parcel delivery will normalize in 2021—the first-quarter is low season; business will improve through the following quarters. In 2Q21-to-date, KEX has delivered more than 2m parcels/day on peak days. Looking ahead, parcel volume should continue growing QoQ through the rest of 2021, especially in 2H21 when the lockdown will ease, incomes will recover, consumers will be more willing to spend, and e-tail operators will offer promotions. In 2022, consumers will shop more online (implying greater parcel volume). Expensive goods are typically bigger than cheap goods, so RPP may also rise, despite charge cuts.