SINGAPORE: Cogent Holdings Limited is a big winner in Singapore’s stock market. Over the past five years, its stock price has jumped by 641%.
This strong performance captured my attention and prompted me to look deeper into the company to learn just how it makes money. What I have below is a quick summary of my study.
Warehousing and Property Management Services was the biggest revenue contributor to the company in 2015, accounting for about 40% of the overall top-line.
This segment is involved with the rental of warehouses and it also provides warehousing services including packing, drumming, and other ancillary services. In addition, the segment also provides property management services.
At the end of 2015, Cogent was managing and operating 3.6 million square feet of covered and open storage spaces.
The next largest segment in 2015 was Automotive Logistics Management Services. As the name suggests, this is where Cogent provides logistics management services for automobiles in Singapore.
The company had over five storage facilities and the capability to store more than 3,000 cars at multiple locations, according to its 2015 annual report.
Just behind Automotive Logistics Management Services is Transportation Management Services. Under the latter segment, Cogent provides transportation services in Singapore for laden and empty containers and other cargoes. It also provides dry hubbing logistics solutions and project cargo services.
The Transportation Management Services segment operated over 100 prime movers and 400 trailers at the end of 2015, serving a wide range of industries such as steel, construction, marine and OPEC (Oil, Petroleum, Energy and Chemicals). The segment’s customers also include third party logistics service providers.
We’re now down to the smallest revenue contributor in 2015 and it is Container Depot Management Services.
In 2016, the company expanded its scope of operations in the segment with the opening of its Cogent1.Logistics Hub.
