Increased Expenses Depresses Profit at Cargo Handlers

• In the financial statements published for the year ended October 31, 2019, Cargo Handlers reported a modest (20.8%) dip in net profit to $130.90Mn (EPS: $0.35) down from $165.23Mn reported in the prior year.
• The company reported an increase in key expense items which accounted for a major part of the decline in net profit. In particular, direct expenses which were non-existent in the prior year increased to $8.20Mn; administrative expenses grew 42.1% (or $9.20Mn) to $31.06Mn; and other operating expenses increased 19.8% (or $32.77Mn) to $198.39Mn.
• The stock has declined 36.7% since the start of the year, and closed trading at $9.50 on Monday. The stock currently trades at a P/E of 27.1x earnings which is above the Junior Market average of 25.2x.

 (Source: CHL Financials)