Source: Beast Finance Author: Beast Finance
Beast Finance has learned that New Century Logistics (BVI) Limited, a Hong Kong logistics company, has recently submitted a prospectus to the U.S. Securities and Exchange Commission (SEC) and applied for an IPO listing on Nasdaq. The stock code is (NCEW). Century Storage plans to issue 2.5 million shares at a mid-price of US$4.50 per share and raise US$11.25 million through this Nasdaq IPO listing.
Company Profile
Hong Kong-based New Century Logistics (BVI) Limited is a company that provides logistics services to companies doing business in China and Asia, North America and Europe.
New Century Logistics (BVI) Limited mainly provides customers with a full range of global logistics services through air and sea import and export freight forwarding services, including cargo space sales, cargo pickup, off-airport cargo security inspection, shipping documents, customs clearance, etc.
Management is led by Mr. Ching Shun Ngan, Chairman and Chief Executive Officer, who has been with the company since 2015 and prior to that he served as Air Cargo Manager at AE Cargo Services Ltd. and was also a subsidiary of GLF Cargo Services Limited ) founder.
As of March 31, 2023, New Century Logistics (BVI) Limited has received US$472,000 in investments from investors.
Industry overview
According to a 2022 market research report by 360 Market Updates, the size of the global contract logistics market is estimated to be US$180.1 billion in 2021 and is expected to reach US$242.5 billion by 2028.
This implies a forecast CAGR of 3.9% for this industry from 2022 to 2028.
The main driver of this expected growth is the increasing need for businesses to redesign and improve their supply chains in the wake of the pandemic.
In addition, the continued growth of the e-commerce industry has placed increasing demands on supply chain efficiency and risk reduction.
New Century Logistics (BVI) Limited’s main competitors in this industry include:
（1）Sinotrans Logistics Ltd
（2）DSV - Global Transport and Logistics
（3）DHL Global Forwarding
(4) Beijing Changjiu Logistics Co., Ltd.
(5) Kerry Logistics (00636)
The company operates in an industry that remains highly fragmented and the company is exposed to a wide variety of competitors, including domestic companies and international logistics companies.
financial situation
According to the IPO prospectus, Beast Finance compiled the financial performance of New Century Logistics (BVI) Limited as follows:
(1) Total revenue: New Century Logistics (BVI) Limited’s total revenue in 2021, 2022 and as of March 31, 2023 are: US$71,659,463, US$75,186,129, and US$19,475,751 respectively.
(2) Gross profit (loss): The gross profit of New Century Logistics (BVI) Limited in 2021, 2022 and as of March 31, 2023 are: US$10,196,612, US$11,543,660, and US$1,922,248, respectively.
(3) Gross profit margin: The gross profit margin of New Century Logistics (BVI) Limited in 2021, 2022 and as of March 31, 2023 are: 14.23%, 15.35% and 9.87% respectively.
(4) Operating profit (loss): The operating profit of New Century Logistics (BVI) Limited in 2021, 2022 and as of March 31, 2023 are: US$6,643,161, US$8,243,481, and US$455,391, respectively.
(5) Net income (loss): The net income of New Century Logistics (BVI) Limited in 2021, 2022 and as of March 31, 2023 are: US$5,533,921, US$6,981,680, and US$401,634, respectively.
(6) Operating cash flow: New Century Logistics (BVI) Limited's operating cash flow in 2021, 2022 and as of March 31, 2023 are: US$4,575,669, US$6,801,033, and US$2,268,151 respectively.
As of March 31, 2023, New Century Logistics (BVI) Limited had $669,014 in cash and $9.6 million in total liabilities.
New Century Logistics (BVI) Limited had negative free cash flow (US$4.3m) in the twelve months to March 31, 2023.
IPO details
According to the IPO prospectus, Beast Finance compiled the IPO situation of New Century Logistics (BVI) Limited as follows:
New Century Logistics (BVI) Limited plans to issue 2.5 million shares at a mid-price of US$4.50 per share and raise US$11.25 million through this Nasdaq IPO listing.
No existing shareholders have expressed interest in purchasing the company's shares at the IPO price.
If the company can successfully list on the Nasdaq IPO, excluding the impact of the underwriters' over-allotment options, the company's market value at the time of IPO will reach approximately US$95.3 million.
The company's current float-to-shares ratio, excluding underwriters' over-allotments, is approximately 11.11%, and numbers below 10% are generally considered "low float" stocks that can be subject to significant price movements.
The company currently does not have an equity compensation incentive plan.
Regarding outstanding legal proceedings, management stated that as of the date of the F-1 filing, there were no pending legal proceedings against the company.
New Century Logistics (BVI) Limited's sole bookrunner for this Nasdaq IPO listing is Craft Capital Management LLC.
The company currently plans to pay no dividends in the future (although it has declared dividends in recent years) and retain any future earnings for reinvestment in the company's growth and working capital needs.
Agency
Boldbeast Finance learned from the IPO prospectus of New Century Logistics (BVI) Limited that Craft Capital Management is the sole underwriter of New Century Logistics (BVI) Limited's IPO listing on Nasdaq. In the past 12 months, One IPO led by the company had a negative return since its IPO (88.4%). This was the worst performance among all major underwriters during the same period.