BANGKOK – Kerry Express (Thailand) Public Company Limited (KEX) is the most recent big Thai logistics business bought by a Chinese company. However, this will allow the Kerry company to continue operating under a parent corporation that has strong transportation capabilities in all “land, sea and air” modes” in the Asia-Pacific region and an e-commerce network.
KEX informed the Stock Exchange of Thailand (SET) on February 6 that SF International Holding (Thailand) Co., Ltd. (“SFTH”) performed a tender offer for all securities of the company.
S.F. International Holding (Thailand) is a subsidiary of S.F. Holding Co., Ltd., a company listed on the Shenzhen Stock Exchange. It announced a tender offer to acquire 73.18 percent of KEX’s outstanding shares.
The performance of Kerry Express (Thailand) Public Company Limited, the latest 9-month report of 2023 shows a total revenue of 8.99 billion baht but a net loss of 2.72 billion baht. In 2022, the company had a total revenue of 17.14 billion baht and a net loss of 2.82 billion baht.
According to CredenData, Kerry Express (Thailand) Public Company Limited had a turnover of 19 billion baht and a net profit of 1.33 billion baht in 2020. However, in 2021, revenue was 19.2 billion baht and net profit was only 31 million baht, representing a significant drop in profit.
In 2022, total revenue amounted to 17.16 billion baht, with an operating loss of 4 billion baht. The net loss amounted to 3.08 billion baht.
According to Prachachat Business, Kerry’s situation is similar to that of other logistics companies such as Flash Express, Ninja Van and Thailand Post, whose logistics performance is still hanging in the balance. This is in stark contrast to logistics companies with their own e-commerce platform ecosystem, which have started to make steady profits after the end of the COVID-19 pandemic.
Lazada Express, for example, has turned from a loss of 200 million in 2021 to a profit of 2.7 billion baht in 2022 and ended 2023 with a profit of 2.9 billion baht. Shopee’s SPX Express (SPX Express (Thailand) Company Limited) went from a loss of 289 million baht in 2021 to a profit of 932 million baht in 2022.
It is therefore interesting to see what changes the takeover of Kerry by S.F. Holding will bring logistics competition in Thailand. Almost all logistics companies in Thailand have capital sources from Chinese and Singaporean giants, as well as solutions and ecosystems that strengthen their parent companies for both e-commerce platforms, management data and international shipping services.
Holding has a complete ecosystem. First, it is involved in popular e-commerce platforms in China such as Taobao and has an express delivery service to support this platform. It has its own network of lockers in Hong Kong and its own stores Heike in China. The company also focuses on supplying stores of e-commerce giants Alibaba and JD.com.
S.F. Express is strong in logistics, including shipping services, which is the starting point of the company, and air express services, which is the highlight of the S.F. empire. S.F. has purchased its own aircraft and manages air transportation, making it the second largest delivery company in China with a wide customer base. The company has 69 cargo aircraft, the largest in Asia.
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